Lecture notes
ALL CONTRACT law TP1 notes! [Lecture NOTES]
- Module
- Law (M100)
- Institution
- Aston University, Birmingham (Aston)
Lecture notes of 29 pages for the course Law at Aston (ALL NOTES!)
[Show more]
Seller
Follow
Content preview
CONTRACTLAW
TP1 NOTES
,Week 5 Enforceability - Intention to create legal
relations (ICLR)
What is enforceability?
• If you have an offer and matching acceptance that makes an agreement.
• Not all agreements are legally binding promises.
Which promises are enforceable?
• There must be an intention to be legally bound (ICLR)
AND EITHER
• Promise is contained in a DEED (official record of an agreement), OR
• Promise is supported by CONSIDERATION (something - act or promise-
given in exchange for the promise which is being enforced)
Domestic or social agreements –
Presumption that there was NO intention to create legal relations
Commercial agreements –
Presumption that the parties intended to create legal relations
-
Presumptions = evidential (may be rebutted) depending on the evidence
Domestic and social agreements
Domestic or social - presumption of no intention to be legally bound
Husband and wife: Balfour v Balfour
• Husband and wife living together ‘in amity’ when the agreement was made.
• Held that there was no ICLR.
Reasons underpinning the decision
• Atkin LJ: Hospitality example. No suggestion that would sue if dinner
cancelled or if an invited guest failed to show up.
• Floodgates danger if such domestic agreements could come before the
courts.
When is the presumption of no ICLR rebutted?
Presumption of no ICLR unless
• Husband and wife about to separate (Merritt v Merritt)
But, even in this situation (separating), agreement must be sufficiently certain in its
terms to be capable of enforcement (Gould v Gould – couple separating but no
ICLR).
In Merritt, important that (i) agreement was in writing and (ii) terms sufficiently
certain.
, Compare Gould (husband promise ‘as long as I can manage it’ held not sufficiently
certain).
The presumption of no ICLR may be rebutted where:
•The terms are sufficiently certain and
•There is strong evidence of reliance (Parker v Clark: agreement between
relatives to share a house).
^ Parker: two couples – elderly couple (C1) and their niece/her husband (C2);
agreement that if C2 sold their house and moved in with C1 sharing household
expenses, C1 would leave house to C2; C2 did that and C1-C2 fell out. Held:
agreement enforceable: (i) very clear certain terms and (ii) reliance (C2 selling
house)
Jones v Padvatton- rebutting the presumption:
• Mother suing daughter for possession of house. Daughter argued there was a
binding contract.
CA held: No ICLR despite reliance by daughter on mother’s promise.
Key factors against ICLR were:
• Uncertain terms – currency and duration
• Parties gave evidence that they would not have envisaged legal action
against each other in order to enforce their agreement.
Words used do not amount to promises e.g., comfort letters – statements of policy or
reassurance only which fall short of a guarantee of the debts of a subsidiary company by the
parent.
Kleinwort Benson v Malaysia Mining – comfort letter was non-promissory statement of
policy
Hirst LJ in Bowerman considered ABTA had made only a statement of policy – and had not
made any contractual promise.
Presumption may be rebutted by express words: honour clauses - ‘binding in honour only’
(so agreeing to exclude jurisdiction of the courts).
• Rose & Frank v Crompton Bros
• Jones v Vernon’s Pools Ltd: no action on football pools coupon
Enforceability of formation promises
Formation promises must either:
• Be contained in a DEED – signed (with signature attested by witness) and
delivered.
OR
• Be supported by consideration (some act or promise given in exchange for
the promise which is being enforced)
• Note that there is no need to establish consideration if the promise is
contained in a deed. Deeds are therefore useful to enforce gratuitous
promises.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lawboss71. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £7.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now