what type of presumptions is there for business contracts (1)
Business contracts have a presumption that there IS an intention to create legal relations, and so are legally binding (__Esso Petroleum v Customs__).
Both parties need to give consideration for this to be the case.
How can a business contract presumption be rubutted 2
This presumption can be rebutted where clear words are used to show no legal intent (Edwards v
Skyways), such as ‘act of goodwill’, or ‘binding in honour * in (Rose and Frank v Crompton), or
’gentlemen’s agreement’* in (Jones v Vernons Pools).
AND/OR
Where the words used are too vague to be a specific promise (‘letter of comfort’ – Kleinwort
Benson v Malaysian Mining).
For business contracts who has the burden of proving the rubuttal applied 3
The party trying to establish no legal intent has the burden of proving that the rebuttal applies, which in this case is D
If the contract is not clearly domestic or commercial, it will be for the person seeking to enforce it to
show legal intent – Sadler v Reynolds.
Are contracts involving free gifts legally binding? 4
Contracts involving free gifts and competition prizes are legally binding (McGowan v Radio Buxton, Esso Petroleum v Customs and Excise)
For Domestic contracts what is the presumption ? (1)
Domestic/Social contracts, such as between family members or friends, have a presumption that
there is NO intention to create legal relations, and so are not legally binding (Balfour v Balfour,
Jones v Padavatton).
How can the presumption be rebutted for domestic contracts (2)
This presumption can be rebutted where there is a commercial basis to the contract, where both parties have given consideration. Usually, this involves money changing hands (Simpkins v Pays)
what are the examples of presumptions domestic (3)
The basis is no longer ‘love and affection’ (Merritt v Merritt).
AND/OR the parties acted on the promise (Parker v Clark).
There must be sufficient evidence to rebut the presumption (Peck v Lateau/Wilson v Burnett).
Can family agreements be legally binding (4)
Family business agreements CAN be legally binding, as long as there is no rebuttal
(Snelling v Snelling).
what is an act of good will (5)
However, if clear words are used to show no legal intent, such as ‘act of goodwill’, a contract between family members may not be legally binding even if it has a commercial basis.
.
How can apparent domestic contracts go beyond social kindness?
Apparent domestic arrangements may in fact be held to be business arrangements
if they go beyond “social kindness” (Albert v Motor Insurer’s Bureau).
Are prenuptial agreements legally binding?
Pre-nuptial agreements are increasingly seen by the courts as legally binding
(Granatino v Radmacher).
In domestic contracts who’s trying to prove legal intent
The party trying to establish legal intent has the burden of proving that the rebuttal applies, which
in this case is [ eg. C].
If the contract is not clearly domestic or commercial, it will be for the person seeking to enforce it to
show legal intent – Sadler v Reynolds.
