Intention To Be Legally Bound - Contract

INTENTION TO BE LEGALLY BOUND Intention must be DETERMINED OBJECTIVELY o Reasonable person SS? Merritt v Merritt * Mere agreement between parties DOES NOT necessitate a contractual agreement o They have to INTEND to be bound by the law SS? Rose and Frank Co v JK Crompton and Bros Ltd Domestic/Social Relationship Commercial/Business Relationship * Presumption exists that the * Presumption exists that the parties DO NOT intend to be parties DO intend to be legally legally bound bound * The plaintiff must prove that * The defendant must prove that there was intention there was no intention * Presumption a? shifting the burden of proof (prove your claim) (usually the party making allegations have the onus of proof) Domestic/Social Relationship: * AGREEMENTS BETWEEN FAMILY AND FRIENDS ARE NOT INTENDED TO BE LEGALLY ENFORCED o Husband and Wife SS? Balfour v Balfour SS? Cohen v Cohen o Separated Couples o Presumption is less likely to arise because there is no love and affection when the contract is made SS? Riches v Hogben SS? Merritt v Merritt o Other Family Relationships o The more remote the relationship, the less likely it is that the presumption will apply o Factors: SS? Seriousness of conduct SS? Expense involved SS? Degree of hostility SS? Subject of agreement * Jones v Pandavatton * Todd v Nicol * Wakeling v Ripley * Roufous v Brewster * Simpkins v Pays PAGE 41