MERRITT v MERRITT (1970) INTENTION TO CREATE LEGAL RELATIONS: Social/Domestic Agreements

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The husband had left the wife and was living with another woman. He signed a written agreement to the effect that he would pay his wife £40 a month, and in consideration of her repaying the mortgage on the jointly-owned matrimonial home, he would transfer it to her sole ownership

After the husband left his wife, he stated that he would pay her £40 a month, from which she had to pay the outstanding mortgage payments on the house. He also signed a written note that provided that, when the mortgage payments had all been made, he would transfer the house to his wife in consideration for her paying all household charges. The wife paid off the mortgage, but the husband refused to transfer the house.

Held: The written agreement was intended to create legal relations between the parties. The presumption against such an intention did not apply when the husband and wife were not living in amity, but were separated or about to separate.

LORD DENNING MR: The first point taken on his behalf by [counsel

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