MGM 3351 (show 2) - Intention to create legal relations To...

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Intention to create legal relations To be determined based on the circumstances surrounding the contract. The intention – express / implied. Two rebuttable presumptions i- business agreement- the parties are presumed to have intended to enter into legal relationship; ii- social, domestic or family agreement the parties do not intend to enter into legal relationship
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Domestic, social or family arrangement Anyone of them must prove that they intent to enter into relationship. O/wise no contract. Balfour v Balfour W could not, for medical reasons, accompanied her husband from England back to Ceylon where he was posted. H promised to pay W monthly allowance. He failed to pay and the wife sued for breach of contract.
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Q- was there a contract? Was there an intention? Held- they was no contract . . because the parties did not intend to enter into a legally enforceable arragement Merrit v Merrit The couple jointly owned a house. Husband left the wife. Both agreed (signed written document) that Mr M would pay Mrs M a monthly sum, and eventually transfer the house to her, if Mrs M kept up the monthly mortgage payments. The mortgage was paid but Mr M refused to transfer the house to Mrs M.
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Q- was there a contract? Did the parties intent to enter into a legally enforceable contract? Held- the fact that Mr and Mrs M were separated when they signed the contract, allowed the court to assume that this was more than a mere domestic arrangement
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Business Arrangement The parties must prove that there was no intention to enter into a legally enforceable agreement. o/wise bound by the contract. Edwards v Skyways Ltd
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MGM 3351 (show 2) - Intention to create legal relations To...

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