Intention and Consideration

The issue of intention to create legal relations is very straightforward. There are two basic rules:

v if the contract is a ‘domestic’ agreement, then there is a presumption that there is no intention to create legal relations (Balfour v Balfour (1919)); and

v if the contract is ‘commercial’ in nature, then there is a presumption that it is intended to be legally binding (Edwards v Skyways (1964)).