Formation (OCR A-Level Law): Flashcards

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Intention to Create Legal Relations
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ITCLR definition

Intention parties want agreement legally binding & enforceable

Effect if ITCLR absent

No enforceable contract, even with offer, acceptance, consideration

Domestic/social agreements presumption

NO intention to create legal relations

Commercial/business agreements presumption

YES intention to create legal relations

Balfour v Balfour (1919) principle

Married couples living together: presumption against ITCLR

Merritt v Merritt (1970) principle

Separated couples: presumption of ITCLR due to changed circumstances

Jones v Vernons Pools (1938) principle

'Binding in honour only' clause rebuts commercial presumption

Blue v Ashley (2017) principle

Intoxicated pub 'banter' lacks ITCLR despite business context

Edwards v Skyways (1964) principle

Business 'ex gratia' payments presumed legally binding

Wells v Devani (2019) principle

Vague terms may show ITCLR if parties acted upon them

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