Professional Documents
Culture Documents
Topics:
Chapter Summary
Introduction
Presumption and Rebuttal of Presumption
Domestic and Social Arrangements
Commercial Arrangements
Exceptions to Commercial Agreements: Mere Puffs, Honour Clauses, Agreement
subject to contract, Ambiguity, Collective Bargaining Agreement.
Chapter Summary:
To be enforceable as a contract the parties must have an intention to create legal
relations. This is judged objectively through the use of two presumptions which
are capable of being rebutted although clear evidence is required to do so.
Introduction:
It is generally accepted that legal systems must have some means of identifying
those agreements which, although to all outward appearances qualify as
contract, are regarded as being beyond the reach of legal remedies. In essence,
therefore the concept of intention to create legal relations is used by the courts
as a device to enable them to deny enforceability to those agreements which
they consider should not be legally enforced.
Presumption and Rebuttal of Presumption:
The conventional view of intention to create legal relations is that agreements
divide for these purposes into two general types: commercial agreements and
social/domestic agreements. For each type there is presumption. The court
requires strong evidence to rebut that presumption. If that evidence is not
available, the court will uphold the presumption.
Domestic and Social Agreements/Arrangements:
The presumption for domestic and social agreements is that they are not legally
enforceable due to the lack of intention of entering into a legal contract. Strong
evidence is required to prove that the parties intended to enter into a legally