Professional Documents
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INTENTION TO CREATE
LEGAL RELATION
PROF MADYA DR REZIAN-NA
MUHAMMED KASSIM
FACULTY OF SPORT SCIENCE AND
RECREATION
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INTENTION TO CREATE LEGAL RELATION
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Cont…
BUSINESS / COMMERCIAL AGREEMENTS
⮚ Presumption: there is an agreement that the parties
intend legal consequences to follow unless the parties
specify otherwise.
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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.
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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.
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Cont… The presumption is rebuttable in the case:
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