law paper 3 contract - intention to create legal relations

What is an intention to create legal relations

Each party to a contract must intend the agreement to be legally binding and therefore enforceable in court

Some courts will only enforce agreements where the parties intended to create legal relations as not all agreements are contacts

Social or domestic agreements

Courts presume agree,nets made between family members or close friends are not intended to form a contract (Balfour v Balfour)

However when a couple are already separated an agreement between them can be taken as legally binding (Merritt v Merritt)

Families can make arrangements that look like business arrangements so court must examine what’s the real purpose of the arrangement m was it social or something with legal intent (snelling v snelling)

If money has exchanged hands or a third party is involved even if made socially this can prove ICLR (simpkins v pays)

Business of commercial agreements

In business dealings the courts will presume any agreement made was intended to be a contract (Edward’s v skyways)

You don’t need to prove a shop or commercial website intended to sell to you as they are a business so do intend to sell

ICLR also found where free gifts or prizes are offered to promote a business - (McGowan v radio Buxton)

ICLR can be rubutted

The presumption of ICLR can be rubutted with clear evidence there was never an intention ( jones v vernon pools)