ICLR

Question 1

In business contracts, there is a presumption that there IS an intention to create legal relations. True or False?

Answer 1

TRUE

This is established in the case of Esso Petroleum v Customs.

Question 2

What must both parties give for a business contract to be legally binding?

Answer 2

• Consideration

Consideration is a fundamental element in forming a legally binding contract.

Question 3

In which case was it established that clear words can rebut the presumption of legal intent in contracts?

Answer 3

Edwards v Skyways

Examples of clear words include ‘act of goodwill’ or ‘gentlemen’s agreement’.

Question 4

What is an example of vague wording that may not constitute a specific promise in a contract?

Answer 4

‘Letter of comfort’

This was established in the case of Kleinwort Benson v Malaysian Mining.

Question 5

Who has the burden of proving that there is no legal intent in a contract?

Answer 5

The party trying to establish no legal intent

This is typically the defendant in the case.

Question 6

In cases where the contract is not clearly domestic or commercial, who must show legal intent?

Answer 6

The person seeking to enforce it

This was established in Sadler v Reynolds.

Question 7

Contracts involving free gifts and competition prizes are legally binding. True or False?

Answer 7

TRUE

This is supported by cases such as McGowan v Radio Buxton and Esso Petroleum v Customs and Excise.

Question 8

In domestic contracts, there is a presumption that there is NO intention to create legal relations. True or False?

Answer 8

TRUE

This is established in cases like Balfour v Balfour and Jones v Padavatton.

Question 9

What can rebut the presumption of no legal intent in domestic contracts?

Answer 9

• Commercial basis to the contract
• Consideration exchanged
• Parties acted on the promise

This includes cases like Simpkins v Pays and Parker v Clark.

Question 10

What must there be to rebut the presumption of no legal intent in domestic contracts?

Answer 10

Sufficient evidence

This was established in cases like Peck v Lateau and Wilson v Burnett.

Question 11

Family business agreements can be legally binding. True or False?

Answer 11

TRUE

This is true as long as there is no rebuttal, as seen in Snelling v Snelling.

Question 12

What phrase indicates no legal intent in a contract, as established in various cases?

Answer 12

‘Act of goodwill’

This phrase can be used to show that the parties did not intend to create legal relations.

Question 13

In business contracts, there is a presumption that there IS an intention to create legal relations. True or False?

Answer 13

TRUE

This is established in the case of Esso Petroleum v Customs.

Question 14

What must both parties give for a business contract to be legally binding?

Answer 14

• Consideration

Consideration is a fundamental element in forming a legally binding contract.

Question 15

In which case was it established that clear words can rebut the presumption of legal intent in contracts?

Answer 15

Edwards v Skyways

Examples of clear words include ‘act of goodwill’ or ‘gentlemen’s agreement’.

Question 16

What is an example of vague wording that may not constitute a specific promise in a contract?

Answer 16

‘Letter of comfort’

This was established in the case of Kleinwort Benson v Malaysian Mining.

Question 17

Who has the burden of proving that there is no legal intent in a contract?

Answer 17

The party trying to establish no legal intent

This is typically the defendant in the case.

Question 18

In cases where the contract is not clearly domestic or commercial, who must show legal intent?

Answer 18

The person seeking to enforce it

This was established in Sadler v Reynolds.

Question 19

Contracts involving free gifts and competition prizes are legally binding. True or False?

Answer 19

TRUE

This is supported by cases such as McGowan v Radio Buxton and Esso Petroleum v Customs and Excise.

Question 20

In domestic contracts, there is a presumption that there is NO intention to create legal relations. True or False?

Answer 20

TRUE

This is established in cases like Balfour v Balfour and Jones v Padavatton.

Question 21

What can rebut the presumption of no legal intent in domestic contracts?

Answer 21

• Commercial basis to the contract
• Consideration exchanged
• Parties acted on the promise

This includes cases like Simpkins v Pays and Parker v Clark.

Question 22

What must there be to rebut the presumption of no legal intent in domestic contracts?

Answer 22

Sufficient evidence

This was established in cases like Peck v Lateau and Wilson v Burnett.

Question 23

Family business agreements can be legally binding. True or False?

Answer 23

TRUE

This is true as long as there is no rebuttal, as seen in Snelling v Snelling.

Question 24

What phrase indicates no legal intent in a contract, as established in various cases?

Answer 24

‘Act of goodwill’

This phrase can be used to show that the parties did not intend to create legal relations.

Question 25

A contract between **family members** may not be legally binding even if it has a _______.

Answer 25

commercial basis ## Footnote This highlights the distinction between domestic arrangements and business arrangements.

Question 26

Apparent domestic arrangements may be held to be **business arrangements** if they go beyond _______.

Answer 26

social kindness ## Footnote Referenced case: Albert v Motor Insurer's Bureau.

Question 27

Pre-nuptial agreements are increasingly seen by the courts as _______.

Answer 27

legally binding ## Footnote Referenced case: Granatino v Radmacher.

Question 28

The party trying to establish **legal intent** has the burden of proving that the rebuttal applies, which in this case is _______.

Answer 28

[eg. C] ## Footnote This emphasizes the responsibility of the party asserting legal intent.

Question 29

If the contract is not clearly domestic or commercial, it will be for the person seeking to enforce it to show _______.

Answer 29

legal intent ## Footnote Referenced case: Sadler v Reynolds.