Scribd
Upload
11 views3 pages

Intention in Legal Relations Explained

Judges consider intention to create legal relations through an objective test by looking at the conduct of the parties and terms of any contract. For domestic agreements between family members, there is a presumption that legal intention did not exist. However, for commercial agreements between businesses, there is a presumption that legal intention did exist. Case examples demonstrate how judges analyze specific factors like contract wording and contexts to determine if legal intention was present.

Uploaded by

NURAMIRA AZLIN BINTI MOHAMAD YUSOF
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views3 pages

Intention in Legal Relations Explained

Judges consider intention to create legal relations through an objective test by looking at the conduct of the parties and terms of any contract. For domestic agreements between family members, there is a presumption that legal intention did not exist. However, for commercial agreements between businesses, there is a presumption that legal intention did exist. Case examples demonstrate how judges analyze specific factors like contract wording and contexts to determine if legal intention was present.

Uploaded by

NURAMIRA AZLIN BINTI MOHAMAD YUSOF
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Definition of Intention to Create Legal

Relations
2

The Contract Act 1950 is silent about it. -------- cases


show it is a necessity to have this requirement.

BUSINESS LAW  Q: How do judges consider its existence?


 A: An objective test
-INTENTION- (intention exists --- a contract is valid)

Definition of Intention to Create Legal Definition of Intention to Create Legal


Relations (cont.) Relations (cont.)
3 4

 Q: How do judges consider its existence?  Q: How do judges consider its existence?
 A: An objective test  A: An objective test: Look into:-
(i. Behaviour of the parties and i. Conduct of parties and
ii. Terms of the contract) ii. Terms of the contract

Intention to Create Legal Relations: Legal


Intention to Create Legal Relations Presumption
5 6

 Carllill’ s case:  Domestic agreements:


F: The D’s argument: No Intention; then no contract  e.g. Family arrangements etc.
existed – b’coz no communication of a proposal to  Among family members; close acquaintances; near
the P – it was only one way of promoting the relations etc.
products  There is a presumption that the intention to create
H: The action/conduct of depositing the money into a legal relations does not exist
bank for a reward ???  Examples: ???
Intention to Create Legal Relations:
Legal Presumption
7 8

 Commercial agreements:  It is up the Court to decide the existence of the


 e.g. Business dealings/arrangements etc. intentions.
 Business associates/links etc.  How?
 There is a presumption that the intention to create  The language used (in the contracts/agreements)
legal relations exists and
 Examples: ???  the context which intentions are used

Commercial agreements: Commercial agreements (cont):


9 10

 Rose & Frank Co. vs. JR Crompton & Bros.


Ltd.
 Low Kar Yit & Ors. vs. Mohd Isa & Anor.
 F: In the agreement: “… not subject to any
jurisdictions in England or the USA…”  F: In the agreement: “… subject to the
 H: No existence of intention to create legal relations
preparation/approval of a formal agreement…”
– no contract existed – no legal liabilities against the Later, no formal agreement was made!
parties  H: No existence of intention to create legal relations
– no contract created – no legal liabilities against the
parties

Commercial agreements (cont): Domestic agreements (cont):


11 12

 Koh Kia Hong vs. Guo Enterprise Pte. Ltd.  Balfour vs. Balfour
 F: GE made an advert to sell properties – KKH made  F:Husband promised to give £30 (to the wife while
an offer to buy – KKH gave some deposit – both the Husband worked in Ceylon (out station)
signed a note - GE gave a formal receipt  H: There was no intention to create legal relation.
 H: There was an intention to create legal relation.
Domestic agreements (cont): Domestic agreements (cont):
13 14

 Merritt vs. Merritt  Simpkin vs. Pays


 F:Husband + Wife (agreement) – if the W settled a house
loan – the ownership will be transferred into her name –
 F:?
later, H refused to transfer the name – argument: no  H: ?
intention
 H: There was an intention to create legal relation: couple
was at stake–always quarreled –not living together-H
stayed with anor. woman-Both were intended to enforce
agreement between them!

You might also like