Contract Law - Intention to Create Legal Relations

Intention to create legal relations is the final element of any binding contract between parties. It sits alongside offer, acceptance and consideration.

The intention is all about how serious the parties are to be legally bound. As stated in Dalrymple v Dalrymple (1811), Contracts are not “mere matters of pleasantry and badinage” but should be intended to create a legal relationship between the parties.

When thinking about intention to create legal relations it is often helpful to split things into domestic and commercial agreements.

Domestic agreements are presumed to not be binding (Balfour v Balfour [1919]) but that presumption can be rebutted if the subject matter is serious enough (Merritt v Merritt [1970]), there is a mutuality of obligations and/or there is performance of the agreement (Pettitt v Pettitt [1970]).

In a similar fashion other domestic relationships can also rebut the presumption of no intention to create legal relations such as parent and child (Jones v Padavatton [1969]) and even roommates (Simpkins v Pays [1955]).

On the other hand the presumption for commercial agreements is that there is an intention to be legally bound.

Although this presumption can be rebutted in the context of 'advertising puff' (Carlill v Carbolic Smoke Ball Co [1893]) and an express intention not to be bound (Rose and Frank v Compton [1923]; Kleinwort Benson Ltd v Malaysian Mining Corporation Bhd [1989]) it is very difficult to do so.

[lauratorres]

Thank you Marcus! You really explain clearly and easy. 🤗

[learnspanishwithdante]

Thank you very much! It was very clear. I am looking forward to more videos on Contract Law

[callumc]

Hey Marcus - terrific video, I found your explanations easy to comprehend and all was presented clearly
Thank you

[arohac]

very clear in explaining things thanks Marcus :)

[t]

Thank you for this video, very helpful for my contract module this year. Nice bookcase btw!

[ceciliaaviles]

Can you please explain financial services in reward to the legal profession. FCA authorization, exemptions. It's so confusing
Thank you very much for your videos, they are super clear and really helpful

[akasieuodia]

Can you please do a video on Capacity to Contract

[chroniclesofbap]

Subbed. Great teacher.
Example of a domestic contract: Prenuptial Agreements?

[Amelia-qmbk]

Do affidavits create a legal relationship when not rebutted? Tia

[irenafinnegan]

Your videos are so helpful and insightful but Why there is no more videos on contact law?

[ameliarobinson]

Do you offer a tutor service like on zoom calls that we can pay for?

[charlottecollins]

May i ask what is specifically different between Simpkins v Pays and Wilson v Burnett which means that Simpkins was allowed their share of the money, but Wilson was not?

[yasirnoor]

Hey Marcus, thanks for thee videos on contract law but can you make more on Duress and undue influence, Misrepresentation mistake and illegality, exclusion of liability.

I know I am asking for alot but ur videos really help so please do create videos on the above topics if you can. Thank you

[petersmith]

Fantastic like every time! I start my course next week and should watch these videos all together. I just have a question. In my assignments, they say that I need to use some ‘wider theories’. Do you know, by any chance, what do they mean by this and how can I answer that part? :)

[phoebethomas]

Can emails form enforceable contracts? Great video btw!