What is the definition of ILR (i.e. define the type of situation)
Social/domestic: there is a presumption that there is not intention to create a legal relationship. This needs to be rebutted to prove the contract is binding.
Commercial: there is a presumption that there is intention to create a legal relationship. This needs to be rebutted to prove the contract is not binding.
What are the cases for social agreements
Balfour v Balfour- No ILR because it was a verbal unwritten agreement between a married couple
Jones v Padvatton - Shows if the parties have a good relationship it is less likely they have ILR
Simpkin v Pays - Shows there may be ILR if money was put toward the agreement with the expectation something would happen
Parker v Clarke - Shows there may be ILR if there is a risk of financial security
What is the process for ILR in domestic situations
Initial presumption there is no intention
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Look at their relationship
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Look at how the agreement was made
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Look at financial involvement
case law for promotions (commercial)
Esso v CCE - when businesses offer promotions, this will probably have intention due to the financial benefits of the promotion, and it is wrong for companies to make false promises.
case law for clause of not binding
Rose and Frank Co. v Crompton Bros - shows that if businesses state something is not binding, the courts treat it as such
Case law for stating its not binding
Jones v Vernon’s Pools - a commercial dispute between a business and individual may not have intent if there is a clear message that the agreement is not legally binding
case law for evidence they didn’t want to be bound
**Kleinwort Benson v MMC **- shows a letter of comfort letter* is not legally binding
*i.e. a statement of promise to fulfil something
Case law for ambiguity
Edwards v Skyways - If the words of an agreement are unclear, the courts will presume that there is a binding contract
Case law for social commercial confusion
Sadler v Reynolds- shows that where it is unclear what type of agreement there is, the person who wants it to be commercial has the burden of proof
What is the order for Commercial agreements
Presumption that there is ILR
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Was the agreement going to benefit the company
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Is there any evidence the parties did not want to be bound to the agreement
