Intention to Create Legal Relations

Legal presumptions

•          Commercial contracts:

–        Presumed intention to create legal relationship

•          Domestic, social and family agreements:

–        Strong presumption parties did not intend to create legal relationship

Two broad areas:

–        Family arrangements

–        Other social arrangements

Family arrangements

•          Balfour v Balfour [1919]

Action failed as no consideration and no intention

to create legally binding agreement

Rebutting the presumption:

•          Merritt v Merritt [1970] – marital breakdown legal relationship

Parents & children:

•          Jones v Padvatton [1969] – allowance from mother to daughter, no legal relationship

Other social arrangements

Mutuality:

•          Simpkins v Pays [1955] – competition entries no formal arrangement, mutuality created agreement

Compared with:

•          Wilson v Burnett [2007] – agreement to share bingo prizes – no agreement

Commercial agreements

Presumption:  intention to create legally binding relationship e.g. Carlill