Where it can be inferred that the parties intended to create legal relations
It cannot be
7. If a husband and wife have separated, an agreement between them is likely to be treated as binding. Which case illustrates this point?
Simpkins -v- Pays
Jones -v- Padavatton
Merritt -v- Merritt
Balfour -v- Balfour
8. If one party puts himself at a disadvantage as a result of an agreement, this is strong evidence that they think the agreement is legally binding and the other party will find it hard to deny the existence of a contract
True
False
9. Which case illustrates this point?
Jones -v- Padavatton
Merritt -v- Merritt
Parker -v- Clark
Simpkins -v- Pays
10. In which case was the court able to find a situation where an agreement between members of the same household could be binding?
Simpkins -v- Pays
Balfour -v- Balfour
Parker -v- Clark
Jones -v- Padavatton
11. Commercial or business agreements are presumed to be legally binding as there is a need for certainty
True
False
12. One way of rebutting this presumption is where the terms of an advertisement are regarded as being "mere puffs"
True
False
13. What is another way by which the presumption can be rebutted?
Where the agreement contains an "honour clause"
If the parties agree that this is to be the case
There are no other ways for the presumption to be rebutted
14. Which case illustrates this point?
Jones -v- Vernon's Pools
Carlill -v- Carbolic Smoke Ball Co Ltd
D & C Builders -v- Rees
15. A 'letter of comfort' can be sent to persuade a supplier to sell goods on credit to a subsidiary company - this is not a legally binding promise to guarantee a debt and therefore rebutts the presumption
