Deck 7: Intention to Create Legal Relations

Question 1

The court will generally look at what the parties actually intended in assessing whether an agreement was meant to be legally binding or not.

Answer 1

False

Question 2

Why are domestic agreements presumed not to be legally binding? Please select all that apply.

A) The trivial nature of many domestic arrangements means the courts are ill-suited to their investigation
B) Domestic and social promises should not be subject to an intrusive legal process.
C) If domestic promises could lead to legally binding contracts, the courts might be overwhelmed by excessive litigation.
D) The parties in domestic agreements rarely provide the consideration necessary to form a contract.

Answer 2

A,B,C

Question 3

Which of the following agreements is least likely to be recognised by the courts as being legally binding? Please select all that apply.

A) A post-nuptial agreement to split marital assets evenly in the event of divorce.
B) An agreement to purchase and share a house together where it was necessary for both parties to dispose of their individual properties in order to afford the arrangement.
C) An agreement between family members involved in a lottery syndicate to split any winnings between them.
D) An agreement between spouses that one party should pay the other a monthly sum for maintenance.

Answer 3

D

Question 4

The burden of rebutting the presumption that legal intentions are intended in commercial transactions lies with the party who denies that any legal effect was intended.

Question 5

Harambe Zoo decides to run a promotion offering commemorative gorilla coins with every purchase of a pair of entry tickets. Much to their horror, they soon learn that purchase tax will be imposed on the coins since visitors are deemed to have entered a contract of sale of the coins. The Zoo contends that the coins are meant as gifts and are thus exempt from the tax. Will their argument succeed?

A) Yes, since a reasonable person who visited the zoo would not have intended to be bound by a contract.
B) No, because the offer of free coins can properly be regarded as a business matter.
C) No, since the visitors to the zoo were not bona fide purchasers for value of the coins.
D) None of the options provided are correct.

Question 6

An agreement that states it shall not be enforced by the courts will always be void as contrary to public policy.
Inorrect