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Intention To Create Legal Relations

The document discusses the legal principle of intention to create legal relations in contracts. It begins by stating that for a contract to be valid, there must be a common intention between the parties to enter into legal obligations, whether expressed explicitly or implied. For commercial contracts, there is a presumption that legal relations were intended, but this can be rebutted in certain cases. For domestic contracts between family members, the presumption is that legal relations were not intended, though there are exceptions. Determining the parties' intention is an objective analysis based on the surrounding context and circumstances of the agreement.

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Abdul Rahman ZAHOOR
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68 views6 pages

Intention To Create Legal Relations

The document discusses the legal principle of intention to create legal relations in contracts. It begins by stating that for a contract to be valid, there must be a common intention between the parties to enter into legal obligations, whether expressed explicitly or implied. For commercial contracts, there is a presumption that legal relations were intended, but this can be rebutted in certain cases. For domestic contracts between family members, the presumption is that legal relations were not intended, though there are exceptions. Determining the parties' intention is an objective analysis based on the surrounding context and circumstances of the agreement.

Uploaded by

Abdul Rahman ZAHOOR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTENTION

TO CREATE
LEGAL
RELATIONS
• Aims

• By the end of this lecture, students should be able to:

Understand the presumptions Understand when and why Understand the principles
relating to domestic and these presumptions will be relating to capacity to
commercial contracts; rebutted; contract.
• Intention to create legal relations

• “… to create a contract there must be a common intention of the


parties to enter into legal obligations, mutually communicated
expressly or impliedly…”
• per Atkin LJ, Rose & Frank v Crompton Bros (1925)
• An objective test.

• Commercial situations – presumption there is an intention to create


legal relations
• Domestic situations ( made between friends , family ,members ,
husband-wife – presumption of no ICLR
Upheld in:
Intention to create legal
relations
Commercial situations - presumption
of ICLR • Bowerman v ABTA (1996)
In certain cases the presumption
• Athena Brands v Superdrug
can be rebutted . stores (2009)
Which can be viewed in the
following cases :
Not upheld in:
• Blue v Ashley (2017 )
• Mc Innes v Gross (2017)
• Rose & Frank v Crompton Bros
(1925) – ‘honourable pledge’
• Kleinwort Benson v Malaysia
Mining (1989) – ‘comfort letter’
• Social and domestic
Intention to create legal
relations situations – presumption of
Married couples – Balfour v no ICLR- general rule –
Balfour (1919)
.Coward v MIB ( between friends )
Parent and child – Jones v
Padavatton (1969)
Exception :
Exceptions : .Soulsbury v Soulsbury
.Darke v Strout
Separating couples – Merritt
v Merritt (1970) Pre marriage contract – Radmacher v Grantino
Mutuality of obligations –
Simpkins v Pays (1955)

Previous conduct – Peck v


Lateau (1973)
Intention to create legal relations
• A contextual approach
• “… whether the parties intended to
enter into legally binding relations is an
issue to be determined objectively and
not by inquiring into their respective
states of mind. The context is all-
important…”
• per
Bingham LJ, Edmonds v Lawson (2000)

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