country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Intention To Create Legal Relations

tag 0 Download8 Pages 1,835 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Intention to Create Legal Relations.

 

Answer:

Introduction

Agreements are not unique. In every place where there is more than one person, they must make an agreement. Among other elements of a contract, contract law require looks whether the parties had the intention to create a legal relation when they were making their agreements.  For a thorough analysis, this paper will use a case study of Caro and Max to look at the application of ‘intention to create legal relations.'

Carol and Max Case

The main issue in this question is under ‘intention to create legal obligations’ in a contract. English law requires that there must be an intention for the parties to be legally bound by their agreement. The law of contract uses tests that the courts apply to determine whether the parties intended to be bound by their promises legally. One of the tests is the courts take an objective approach[1]  This test looks at what the individuals said and did, plus what transpired after the agreement. Lord Clarke said[2]

“Whether there is a binding contract between the parties and, if so, upon what terms depends upon what they have agreed. It depends not upon their subjective state of mind, but upon a consideration of what was communicated between them by words or conduct, and whether that leads objectively to a conclusion that they intended to create legal relations and had agreed upon all the terms which they regarded or the law requires as essential for the formation of legally binding relations.”

The reason why courts use this approach is that the parties’ disputes come after finalizing their agreements. The objective approach is not much difference with what courts call a reasonable man’s perspective.[3] Objective approach relies on two distinctions; agreements originating from a domestic or social setting, and agreements coming from commercial context.[4]  Where agreement seems to have been made within social and domestic settings, the presumption is that the parties never meant to create a legally binding agreement.[5] For example, in the case Jones v Padavatton, the court found that the agreement was not enforceable.[6] In most cases, family agreements like father and son or husband a wife follow this course. However, sometimes this presumption extends to agreements between friends or workmates. A good example is the case of Hadley v Kemp, the court stated that an oral agreement needed to be spoken with the intention to bind the parties legally, but since the parties had been acquaintances back from their school days, their relationship was distancing from that of business.[7] So there was no cost sharing of the profits.

However, at some point, the court can quash this assumption. This case happens when the parties designate a clear indication of an intention to be bound. The court considers three things. One is the manifested intentions, the content of the agreement and lastly, the facts encompassing the case. For instance; where commercial matters encompass the agreement. In Simpkins v. Pays the court found the agreement binding.[8] This case concerned a Lodger suing a Woman and her granddaughter after she refused to share the prize yet they had played together. A similar decision was held for Archbishop Ermogenous.[9] The considered the issue of PAYE deductions and salary, these were used to give an insight that there was employment and therefore the parties intended to have a legal binding agreement.

 Where the agreement arises from a commercial environment, the presumption is that the parties intended to create a legal relationship[10].  A helpful example is the case of Esso Petroleum Ltd v Commissioners of Customs and Excise.[11] This case developed after Esso started a sales promotion program whereby they offered garage owners a ‘free’ World Cup coin for every four gallons of petrol. The Customs and Excise were concerned with their operation and wanted to claim the purchase tax on the ‘sale’ of the coins. The House of Lords concluded that Esso had adopted the method as a way to gain more sales, meaning there was an intention to create a legal enforcement and were supposed to pay tax.

Likewise, in comparison with to the case of Caro and Max, it can be argued that their agreement is legally binding. Taking the example of Esso Petroleum, Max wanted to increase his sales, so the agreement was all about business matters.[12] Additionally, Miller and Jentz suggested that when looking for objective facts, there is a need to look at the words of the parties while negotiating the agreement, the action that took place after the negotiation, and the circumstances both prevailing and surrounding the transactions in question.[13] This notion, makes the intention for an enforceable agreement very clear. First of all, even though they met in a social place and the root of their friendship comes from a social network (LinkedIn), the primary intention that drove Max to know Carol was for business and not other matters. A reasonable man knowing that Max looked for Carol because of Max’s business hardships would not think that the meeting was about anything except business. So with this reasoning, the meeting was encompassed by financial circumstances. Secondly, by analyzing what happened after the meeting particularly the act of Max sending Carol $1200, this makes a proof that the negotiation was a commercial matter. Thirdly, the court can apply the reasoning of Devlin J.[14] If Max would not have sent the money if the agreement between him and Carol was not enforceable.

 

Element for an Enforceable Agreement Between Max and Carol

This issue is a matter of testing whether the agreement between Max and Carol contained all the elements of a legitimate or binding agreement. To start, an enforceable agreement should encompass an offer made by the offeror, andd the offeree replying with acceptance. An offer constitutes three elements. Common law dictates that an offerer must manifest its intention to enter into an agreement.[15] In short, the offeror must also put a degree of seriousness and objective purpose to an effective offer. The intention is determined by that fact that from a reasonable man’s perspective, he would see that the offeror’s action suggested an offer. For this reason, any offer resulting from anger, duress, or excitement will create a void agreement.[16] A comparison of this case the judgement held in the Supreme Court of California,

“The mental assent of the parties is not requisite for the formation of a contract. If the words or other acts of one of the parties have but one reasonable meaning, his undisclosed intention is immaterial except when an unreasonable meaning which he attaches to his manifestations is known to the other party.”[17]

This case arose from a contract of sale of a farm signed by the parties after having some distilled spirit. Zehmer later disputed the contract claiming that the intention to sell was a joke but the court ordered a specific performance since there was a valid agreement. So like this case, Carol would not have been joking by presenting the work outline and requesting via an email written confirmation.

Another requirement of an offer that should also be in Max should include is the definiteness of the terms. A clear outline of this states that “an offer is an act or a statement that proposes definite terms and permits the other party to create a contract by accepting those terms.” [18] After an offer has been made, it would need to be accepted by the offeree as presented by the offeror so that it can become an agreement. And like an offer, acceptance should demonstrate a manifestation of the willingness to be bound by the agreement.[19] In addition, the law of contract states that acceptance must be unequivocal and it should be communicated to the offeror.

Like as seen above, Carol accepted the offer when she called Max the day after their meeting when she called to tell Max that she has accepted the offer. Denning LJ ruled on acceptance through a phone or telex.[20] This decision set a guidance regarding on the acceptance of a contracts where parties are at a distance. As a summary, it simply states that where means telecommunication are used in indication acceptance, and the methods of acceptance are instantaneous, acceptance is then deemed communicated as soon as the offeror receives the communication from the offeree. That is to say, Carol accepted Max offer the moment she called him and communicated of her acceptance.

Acceptance of a contract can also occur through the conducts of the parties. If Max misinterpreted the email (wanting also to have a written record of this arrangement with Max, Carol emails him on Thursday evening) and paid her the $1200, and Carol didn’t take action to return the money, it can be said that Carol accepted the contract by estoppel.

Another requirement of an agreement is considerations. The rules of consideration were set by Patteson J as, “Consideration must be of value and involve benefit or detriment”[21] This issue arose shortly after the detat of Thomas. Before dying, he shown the interest to have his wife to use the house, the executor of the will made an agreement with the wife that the wife would pay £1/year for the husband’s desire. Later the wife refused to pay and the executor commenced suit. The judge held that the deceased desire was not satisfactory consideration.

Conclusion

An enforceable agreement does not only rely on an offer, acceptance, and consideration. The law also requires the parties’ intention to create a legally binding contract. However, people should be very careful while dealing with friends and family relative. There is a high chance that the court will regard an unwritten agreement not binding the dispute comes from friends or family relative.

 

Biography

Stone, Richard, James Devenney, and Ralph Cunnington. 2011. Text, Cases And Materials On Contract Law. 2nd ed. London: Routeldge.

O'Sullivan, J. and Hilliard, J. 2016. The law of contract. 7th ed. Oxford University Press.

Mason, J. 2016. Construction Law. 1st ed. Routledge

Miller, R. and Jentz, G. 2010. Business law today. 9th ed. Mason, Ohio [u.a.]: South-Western Cengage Learning.

Meiners, R.E., Ringleb A.H., Frances L., & Edwards F.E.,2016. Legal environment of business. 13th ed. [. Mason, Ohio [u.a.]: Cengage Learning. 

Cases

Coward v Motor Insurers’ Bureau. 1962 1 All ER 531

Entores Ltd v Miles Far East Corporation. 1955 EWCA Civ 3

Entorres v Miles Far East. 1955 2 QB 327 Court of Appeal

Hadley v Kemp.1999 EMLR 589

Hartog v Colin & Shields. 1939 3 All ER 566.

Jones v Padavatton. 1968 EWCA Civ 4

Lucy v. Zehmer, 196 Va. 493, 84 S.E.2d 516 (1954).

Parker v Clark. 1960 1 WLR 286.

RTS Flexible Systems Limited v Molkerei Alois Muller GmbH. 2010 UKSC 14

Scientific Elec. Co., Inc. v. ADG Park Constr. Group, LLC, 2013 N.Y. Slip Op 31251 (Sup. Ct. 2013).

Simpkins v Pays. 1955 1 WLR 975 Queen's Bench Division

Thomas v Thomas (1842) 2 QB 851

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Intention To Create Legal Relations. Retrieved from https://myassignmenthelp.com/free-samples/intention-to-create-legal-relations.

"Intention To Create Legal Relations." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/intention-to-create-legal-relations.

My Assignment Help (2018) Intention To Create Legal Relations [Online]. Available from: https://myassignmenthelp.com/free-samples/intention-to-create-legal-relations
[Accessed 09 April 2020].

My Assignment Help. 'Intention To Create Legal Relations' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/intention-to-create-legal-relations> accessed 09 April 2020.

My Assignment Help. Intention To Create Legal Relations [Internet]. My Assignment Help. 2018 [cited 09 April 2020]. Available from: https://myassignmenthelp.com/free-samples/intention-to-create-legal-relations.


MyAssignmenthelp.com has become one of the leading assignment help provider in New York City and Boston. We provide top class auditing assignment help. Not only auditing, but we also cover more than 100 subjects and our writers deal with all types of assignments with utmost expertise. To make writing process faster and accurate, we have segmented our assignment experts' teams as per their expertise on writing different types of assignments. We guaranteed that students who buy our assignment online get solutions worth their investment.

Latest Business Law Samples

CLAW314 Corporate Law

Download : 0 | Pages : 6

Answer: Issue  Whether any legal obligations can be raised against CMS, CM or Lazarus Pty Ltd for the loss that is sustained by Terry? Applicable Law One of the business forms that are generally availed by the people of Australia is to run their business by way of a company. A company is created by getting the same registered as per the law of Australia. A register company is an entity which has its own existence in law. Once a company...

Read More arrow

ACC304 Taxation Law

Download : 0 | Pages : 10
  • Course Code: ACC304
  • University: Australian Institute Of Higher Education
  • Country: Australia

Answer: Case 1 Issues  The assessment of income is based on the residential status of the person. The income tax assessment act 1997 specifies the several provisions related with the changeability of the income tax in case of a resident or non-resident person of Australia (Wilkins, 2015). The present study revolves around determining the residential status of the person named as Jack. Jack has the visa from his first visit Australia in 20...

Read More arrow

BULAW5914 Commercial Law

Download : 0 | Pages : 11
  • Course Code: BULAW5914
  • University: Federation University
  • Country: Australia

Answer: Material Facts Samsung launched the Galaxy Note 7 smartphone in August 2016, and it was discontinued by the company in October 2016. The reason for discontinuing the smartphone was the battery issue in the phone which caused some phones to generate excessive heat. Due to excessive heat, many smartphones caught fire, and they caused physical injuries to the customers. The company recalled its smartphones and also took measures to reduc...

Read More arrow

MBA506 Conflict Management Analysis And Evaluation

Download : 0 | Pages : 9
  • Course Code: MBA506
  • University: Kaplan Business School
  • Country: United States

Answer: Introduction The below report provides an in-depth analysis of the analysis of the debate which has happened between Lemon, Camerota and Reza. The issue of debate was ‘Is Islam and terrorism are the same'. The report also provides a deep analysis of each and every participant present in the debate. It also contains the intention and perspective of every party of the debate. In the end, the rights of women are also discussed in t...

Read More arrow

BLO 5540 Business And Company Law

Download : 0 | Pages : 10
  • Course Code: BLO 5540
  • University: Victoria University
  • Country: Australia

Answer: Introduction: In Australia, the Corporations Act 2001 (Cth) is the key legislation which governs the operations of companies in the country. As per this Act, various duties are imposed on directors to ensure that they conduct their operations in an ethical manner without adversely affecting the interest of the company or its stakeholders. The directors have to comply with these regulations in order to avoid legal consequence...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,249,346

Orders

4.9/5

Overall Rating

5,068

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

265 Order Completed

97% Response Time

Ken Campbell

MSc in Electrical Engineering

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

529 Order Completed

95% Response Time

Ivan Blank

PhD in Functional Human Biology

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

285 Order Completed

99% Response Time

Eugene Baranowski

MBA in Supply Chain

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

2594 Order Completed

95% Response Time

Michael Johnson

Masters of MSc in Economics

Washington, United States

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

I hope I get good mark! I hope I get good mark!I hope I get good mark!I hope I get good mark!I hope I get good mark!I hope I get good mark!

flag

User Id: 392150 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating

HANDED IN ON TIME THOUGH GAVE A VERY SHORT TIME TO DO SO. THE WORK WAS WELL DONE TOO!!

flag

User Id: 194216 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating

Always impecable work. I super reccoment this service to anyone. The quality of work and agile delivery are the high points.

flag

User Id: 396689 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating

this was an excellent assignment I cant understand how the assignments can differ in presentation, is it that some writers are trained and some are not.

flag

User Id: 315260 - 08 Apr 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?