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    153 views7 pages

    Chapter 5 Intention To Create Legal Relation

    Uploaded by

    Zuhyri Mohamad

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    CONTRACT LAW

    INTENTION TO CREATE
    LEGAL RELATION
    PROF MADYA DR REZIAN-NA
    MUHAMMED KASSIM
    FACULTY OF SPORT SCIENCE AND
    RECREATION

    *
    INTENTION TO CREATE LEGAL RELATION

    ⮚ A valid contract requires an intention to create legal


    relations. The court determines where there is such an
    intention from the language used and the context in which it
    is used. There are 2 presumptions have developed in the
    determination of intention with respect to agreements:

    1. Business / Commercial agreements


    2. Social, domestic and family agreements

    * 2
    Cont…
    BUSINESS / COMMERCIAL AGREEMENTS
    ⮚ Presumption: there is an agreement that the parties
    intend legal consequences to follow unless the parties
    specify otherwise.

    WINN v BULL (1877)


    • A written agreement for a lease of a house ‘subject to the
    preparation and approval of a formal contract’.
    • Held:There was no enforceable contract because no
    further formal contract was entered into.

    * 3
    Cont…
    SOCIAL, DOMESTIC AND FAMILY AGREEMENTS
    ✔ In social, domestic or family agreement, it is implied as a
    matter of course that no legal relations are contemplated,
    but such presumption may be rebuttable.
    ✔ Normally it does not constitute a legally binding agreement.
    This is because parties have no intention to create legal
    relation.
    Balfour v Balfour [1919]
    ⮚ The defendant husband was a civil servant stationed in
    Sri Lanka. When he was in England, he had promised his
    wife that he will pay her a monthly allowance as
    maintenance. The wife was unable to accompany the
    husband because of her poor health.

    *
    Cont…
    ⮚ The defendant did not give the plaintiff the monthly
    allowance. The plaintiff brought an action against the
    defendant for breach of a contract.
    ⮚ The court held: it was not a legally enforceable agreement
    because the parties did not intend that they should be
    attended by legal consequences.
    Pettitt v Pettitt [1970]
    ⮚ Lord Diplock said that : Although many agreements between
    spouses are not intended to be legally enforceable,
    performance of such agreements may give rise to legal
    consequences in other fields of law.

    *
    Cont… The presumption is rebuttable in the case:

    Merrit v Merrit [1970]


    ⮚ The husband left the matrimonial home which was in the joint
    names of husband and wife and subject to a mortgage. The
    husband and wife had a discussion in which the husband agreed
    to pay the wife £40 a month out of which she should pay the
    outstanding mortgage payments and when such payments had
    been completed, he would transfer the property to her sole
    ownership. The agreement was recorded in writing on a piece
    of paper and signed by the husband. Upon completion of the
    payment, the husband refused to transfer the house.
    ⮚ Held: the parties had intended to create legal relations and
    accordingly ordered that the house be transferred to the wife.

    *
    *

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