Intention & Certainty

It is presumed the parties intend to create legal relations in

• Social agreements

• Commercial & business agreements

• All agreements

Select the case in which it was held that the parties did intend to create legal relations.

• Merrit v Merrit

• Balfour v Balfour

• Coward v Motor Insurer's Bureau

Where an agreement is made in a social or domestic context what is the general rule relating to intention to create legal relations?

• The courts presume the parties intended to create legal relations.

• All social or domestic agreements are legally binding.

• The courts presume the parties did not intend to create legal relations.

Business agreements sometimes use clause "subject to formal contract". What does this clause mean in an agreement?

• The clause means that the agreement is not legally enforceable.

• he clause means that the agreement is enforceable in the courts.

• It is a clause covering business ethics.

In which type of agreement is the intention to create legal relations presumed to exist?

• Agreements between seller and purchaser

• Agreements between husband and wife

• Agreements between friends or family

Which of the following is the fact of Balfour v Balfour case?

• A mother bought a house for her daughter to live in whilst studying.

• A motorcyclist gave his friend a lift to work.

• A husband agreed to send money home to his wife.

_____________ is one of the elements to form a binding contract though the Contracts Act is silence on it.

What are the requirements for a valid and binding contract?

• Offer, acceptance, certainty, consideration, and reasonableness..

• Offer, acceptance, consideration, and intention to create legal relations

• Offer, acceptance, certainty and practicality.

There is a presumption that in family arrangements the parties do not intend to create legal relations.

• True

• False

Agreements "subject to contract" are not intended to be binding as such contracts are not complete until the formal contract has been entered into.

• True

• False