Legal Relations

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  • Created by: Lucy
  • Created on: 18-07-15 08:30
Contract to be binding
parties must have that intention
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no clear statement of intention courts use presumptions:
Social, domestic + family arrangements are presumed to be not legally binding. Commercial agreements are presumed to be legally binding.
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Presumptions for husband and wife
agreements not legally binding unless the parties specify either expressly or by implication that they intend the agreement to be legally binding.
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Balfour V Balfour
H moved, W stayed at home. H agreed to pay £30 a month as maintenance. The marriage subsequently broke up. Held: Maintenance was a domestic arrangement only, as it was made informally, was of indefinite duration, + they still together
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Merritt V Merritt
H left jointly owed family home to live with another woman. H and W agreed in writing that H would pay £40 per month in return W would make the mortgage payments + H would transfer share of house to her. Held: W entitled to enforce agreement.
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What will courts look at when arrangements are made
intentions
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Simpkins V Pays
P, S the lodger, + P granddaughter took part in weekly 'spot the ball' comp. Arrangements over payment + postage were informal + entries made in P's name. Won £750, P refused to give S 1/3. Held: Agreement legally binding.
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Agreement for commerical agreements remaining binding if
Any ambiguity. Presumption is that these are intended to be legally binding.
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Comfort letters
Holding companies sometimes give letters of comfort to creditors of subsidiary companies. - Not legally binding
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Kleinwort Benson V Malaysian Mining Corporation
K lent money to M's after receiving letter stating 'our policy to ensure that at all times in position to meet liabilities to you'- went to liquidation K sought to rely on letter. Held: statement of policy not guarantee. K experienced ask guarantee
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Transactions binding in honour only
express denial of an intention to create legal relations
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Jones V Vernon's Pool
J sent winning coupon to V but never arrived. Coupon stated 'transactions between parties should not give rise to legal relationship + is binding in honour only' Held: statement prevented J from bringing a successful action against V.
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Privity of contract
Only a party of a contact has enforceable rights or obligations under it. 3rd party have no rights
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Tweddle V Atkinson
T married daughter of G. G agreed with T's father that they would pay sum of money to T. G died before making his payment and sued G's executor, Mr A for payment. Held: T could not enforce contract, as he was not party to it.
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Exceptions to basic rule, all practical in nature
claiming under 3rd party insurance, A principal, where agent made the contract, Executor of deceased person can enforce on behalf of deceased, where benefit of contract has be assigned, with agreement of other party to contract, to 3rd party.
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Under Contracts (Right of 3rd parties) Act 1999, 3rd party rights will accrue if:
3rd party must be identified in contract, but does not have to exist at the time the contract is made, e.g. unborn child, Contract expressly provides for 3rd party to enforce the contract. 3rd party entitled to enforce negative stipulations
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Other cards in this set

Card 2

Front

Social, domestic + family arrangements are presumed to be not legally binding. Commercial agreements are presumed to be legally binding.

Back

no clear statement of intention courts use presumptions:

Card 3

Front

agreements not legally binding unless the parties specify either expressly or by implication that they intend the agreement to be legally binding.

Back

Preview of the back of card 3

Card 4

Front

H moved, W stayed at home. H agreed to pay £30 a month as maintenance. The marriage subsequently broke up. Held: Maintenance was a domestic arrangement only, as it was made informally, was of indefinite duration, + they still together

Back

Preview of the back of card 4

Card 5

Front

H left jointly owed family home to live with another woman. H and W agreed in writing that H would pay £40 per month in return W would make the mortgage payments + H would transfer share of house to her. Held: W entitled to enforce agreement.

Back

Preview of the back of card 5
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