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Chaptter 2

Inteention to creeate leegal reelationns

If a contract iss to be creaated both pparties must intend too enter intoo a
legaal relationsship. If the situation iss not obvioous there aare two rebuttable
pressumptions which cann be applied.

(A ppresumptioon means tthat the claaimant in thhe action nneed not prrove
certtain matterrs on a ‘ballance of prrobabilities’ basis; thee court asssumes
thatt they existt).

Domesstic agreemments

It is preesumed theere is no inntention to be legally bound in aa social or domestic
arrangeement.

This prresumptionn can be reebutted or ooverturnedd by showinng that theere was cleear
evidencce that thee parties didd intend too create leggal relationns.

Illuustratioon 14 – Inteention to creeate

leggal relationss

BALLFOUR v BBALFOURR 1919

Factts:

Mr. BBalfour, whho was aboout to go aabroad, proomised to ppay his wiffe £30 per
monnth in consiideration oof her agreeeing to suppport herseelf without calling on him
for aany further maintenannce. The wwife said the husbandd was contr ractually bound
by thhe promisee.

Heldd:

Therre was no legally binding contraact betweeen the parties. It was a domestiic
arranngement aand it was ppresumed the partiess did not inntend to bee legally boound.

The preesumption is also rebbutted if thee agreemeent is between spousses where the
parties were not lliving togetther happilly at the timme of the aagreement..

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