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Contract law
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- City University (City)
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L6 ~ Intention to Create Legal RelationsTuesday, November 16, 2021 12:05
Intention to Create Legal Relations ~
Parties to a contract must intend to undertake legally binding obligations:
-The doctrine of ICLR another tool of public policy to regulate enforcement.
Policy behind requiring intention to create legal relations:
1. Conserving judicial resources.
-courts are a limited resource
-do not want to waste resources on cases where there is doubt
2. Promoting market transactions.
-want court and law to promote marketing transactions
-so that agreements that reflect real market transactions and give th
priority over cases based on family or weaker doubtful contracts
3. Freedom from contract.
-if we enforce a contract based in loose conversations we don’t wan
accidentally to find themselves in a legally binding contract.
-a way of protecting parties from contractually binding contracts
Domestic OR Social Arrangements ~
2 types of assumptions
Rebuttal presumptions: presumption that parties do not intend to creat legal rel
Non-rebuttal presumptions
Balfour v Balfour [1919]
-Husband agreed to give £30 a month whilst he was abroad
-he didn’t
-wife took him to court
-court said there was no intention to creat binding legal relations
-no intention due to nature of the settings
-An objective approach is taken when considering intention to contract.
-Policy considerations: Court time should not be wasted with trivial
disputes.
-Relevant that the parties had not yet separated when the agreement was
made.
Jones v Padavatton [1969]
-mother promised daughter money if she moved to England and becomes a barr
-mother bought a house and did mortgage payments etc
-daughter failed bar exam so mother evicted her.
-daughter brought up that mother promised her she could live in the house
-court sided with mother who said there was no intention to make a binding con
-Courts should not be troubled with family relations as it is a waste of resources.
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