lec-2 legal intention

2020 4 13 1 LECTURE 2ValidityofContractStep1 6 LegalIntention Remember Elementsofavalidcontract 6elementsinavalidcontractintention 订约意图 agreement 协议 consideration 对价 capacity 订约能力 consent 意思表示真实 legality 订约目的合法 2020 4 13 2 2020 4 13 3 2 0Legalintentioningeneral 2 0LegalintentioninGeneral Fromlastweek whatisLegalIntention Intention 订约意图 Thepartiesmustwantandmeantocreateacontract Theyintendtocreateacontract 2020 4 13 4 2 0LegalintentioninGeneral Whichmeans Anagreementwillnotbelegallyenforceableunlessthepartiesintendedthatitwouldcreatealegalrelationship 2020 4 13 5 2020 4 13 6 2 1Howtodetermine 2 1Howtodetermine IfIntentionisrequiredforacontract then Howdowedetermine test whetherornotthepartiesmeantto intendedto createacontract Typically incommonlaw ifthereisastandard here anessentialcontractelement thenthereisatestthatthecourtsuseforthatstandard 2020 4 13 7 2 1Howtodetermine ThetestforintentionisobjectiveObjective incommonlawjurisprudence meanswhatareasonablepersonwouldbelieveifprovidedwiththesamefactsObjectiveteststryto Escapethe hesaid shesaid problemofasubjectivetestEncourageconsistencyandpredictabilityinthelaw 2020 4 13 8 2 1Howtodetermine Let slookatthetest Wouldthewordsandconductofthepartiesleadareasonablepersontoconclude onthebalanceofprobabilities thatthepartiesintendedtobelegallybound 2020 4 13 9 2 1Howtodetermine Let slookatthetestagain thistimelikealawyer Wouldthewordsandconductofthepartiesleadareasonablepersontoconclude onthebalanceofprobabilities thatthepartiesintendedtobelegallybound Wemustunderstandeachoftheseparts 2020 4 13 10 2 1Howtodetermine WordsandconductofthepartiesThismeanswe relookingatbothwordsandconduct butnotbeliefs ofAnd justthewordsandconductoftheparties notanyoneelse 2020 4 13 11 2 1Howtodetermine 2 leadareasonablepersontoconclude A reasonableperson Whichreallymeansan averageperson Notwhatthepartiesthought orwouldthink butwhatatheoreticalreasonablepersonwouldthink ifweaskedthemThisisaverycommonprincipleincommonlaw 2020 4 13 12 2 1Howtodetermine 3 Onthebalanceofprobabilities ThisisaruleofevidenceforcivillawtrialsIsanissuemorelikelytobetruethanfalse Technically thisisa51 49 testInpractice greaterlikelihoodisusuallyexpectedSo we relookingforthemorelikelyanswer notthe100 answer 2020 4 13 13 2 1Howtodetermine 4 Thatthepartiesintendedtobelegallybound DidbothpartiesthinktheywereenteringacontractandwanttobeenteringacontractWe renotaskingwhathappened butwhattheyintendedtohappen 2020 4 13 14 2 1Howtodetermine Let slookatthetestonemoretime nowthatweunderstandit Wouldthe1 wordsandconductoftheparties2 leadareasonablepersontoconclude 3 onthebalanceofprobabilities 4 thatthepartiesintendedtobelegallybound Nowweknow whenwehaveaquestiononintention thisishowweanalyzeit 2020 4 13 15 2020 4 13 16 2 2CommonLawPresumptions 2 2Commonlawpresumptions Whenjudgingissuesofintent courtsmaketwopresumptionsapresumptionisapreliminarybelief afactortrendweacceptinordertohelpusjudgeaccuratelyandefficiently 2020 4 13 17 2 2Commonlawpresumptions Thetwopresumptionsofthecourt Iftheagreementisdomesticorsocial thenthereisusuallynointenttobelegallyboundIftheagreementisabusinessorcommercialagreement thenthereusuallyisanintenttobelegallybound 2020 4 13 18 2 2Commonlawpresumptions Arethesepresumptionsabsolute No thesepresumptionscanberebutted provedwrong withevidenceLet slookateachpresumptioninturn DomesticagreementsSocialagreementsBusinessandcommercialagreements 2020 4 13 19 2020 4 13 20 2 3DomesticandSocialAgreements 2 3DomesticandSocialAgreements Whatisadomesticagreement AdomesticagreementisbetweenoramongfamilymembersEspeciallyhusbandsandwivesorparentsandchildrenSothepresumptionis Whenfamilymembers especiallymarriedcouples makeanagreement theydonotusuallyintendtomakealegalcontract 2020 4 13 21 2 3DomesticandSocialAgreements Whatisasocialagreement Asocialagreementisbetweenfriendsorotherfriendly closelyrelatedpartiesThiscanincludeco workersiftherelationshiporagreementis social innatureSothepresumptionis Whenfriendsmakeanagreement theydonotusuallyintendtomakealegalcontract 2020 4 13 22 2 3DomesticandSocialAgreements Howcourtsdetermineifanagreementisadomesticorsocialagreement HowfriendlyarepartiesDidtheagreementhaveacommercialaspectSizeandnatureofconsiderationHowseriousaretheconsequencesiftheagreementisnotperformed 2020 4 13 23 2020 4 13 24 2 3 1DomesticandSocialAgreements Cases 2 3 1Dom andSoc Agreements Cases Balfourv Balfour 1912 p201 FactsMr BalfourandhiswifelivedinSriLanka TheyvacationedintheUK whereMrs BalfourbecametoosicktoreturntoSriLanka TheyagreedthatshewouldremainintheUKandhewouldpayher 30amonth Later theystillliveapartandhestoppedpayingShesuedforbreachofcontract 2020 4 13 25 2 3 1Dom andSoc Agreements Cases Balfourv Balfour 1912 p201 Holding ThereisnocontracthereReasoningMrs Balfourcouldnotrebutthedomesticagreementpresumption i e noevidencethattheyintendedtoformalegallybindingcontractDevelopmentoflaw courtessentiallysays ifyouaremarried thentheremustbeexplicitevidencethatyouintendedtoformalegal ratherthandomestic agreement 2020 4 13 26 2 3 1Dom andSoc Agreements Cases Cohenv Cohen 1939 FactsBeforetheyweremarried agroompromisedhisbridearegulardressallowance But oncetheywereseparated hestoppedpaying andtheformerMrs Cohensuedfortheallowance money onatheoryofcontract 2020 4 13 27 2 3 1Dom andSoc Agreements Cases Cohenv Cohen 1939 Holding Mrs CohenwasunsuccessfulReasoningCourtheldthatthiswasaDomesticAgreementCourtsaidthatafinancialagreementbetweenhusbandandwifeshouldnotberegardedasacontractunlessotherwiseagreed Thatis nolegalintentiontoformcontracthere 2020 4 13 28 2 3 1Dom andSoc Agreements Cases TeenRanchv Brown 1995 FactsBrownwasavolunteerat TeenRanch aChristianyouthcenter Hereceivednowages butdidreceivehousingandfood Brownwasinjuredandsuedforworkerscompensation arguingthathehadenteredintoacontractofemployment 2020 4 13 29 2 3 1Dom andSoc Agreements Cases TeenRanchv Brown 1995 Ruling Brownloses nocontractReasoningCourtsaysthereis nopositiveindication thatthepartieshadintendedtoenterintoalegalrelationship So despiteworkinexchangeforfoodandhousing stillnointentiontoformacontract becausethisisconsideredasocialagreement 2020 4 13 30 2 3 2Dom AndSoc Agreements Cases So basedonthesecases aretherenocontractsbetweenhusbandsandwivesorfriends basedonthepresumptionthattheydonotintendtocreatealegallybindingagreement No thepresumptioncanberebutted provedwronginthiscase 2020 4 13 31 2020 4 13 32 2 3 2DomesticandSocialAgreements Rebuttal 2 3 2Dom AndSoc Agmts Rebuttal Merrittv Merritt 1970 FactsAhusbandlefthiswifetobewithanotherwomanThepartiesagreedthatthehusbandwouldtransferhishalfownershipofthematrimonialhome wheretheylivedwhilemarried tothewifeThehusbandlaterrefusedtohonorthatagreementThewifesuedforbreachofcontract 2020 4 13 33 2 3 2Dom AndSoc Agmts Rebuttal Merrittv Merritt 1970 Ruling ThewifesucceededReasoningThedomesticpresumptiondoesnotapplyifthepartiesareseparated notlivinginamityasinBalfourv BalfourKeypointforthecourtisthattheagreementwasmadeafterthepartieswereseparated thereforetheyprobablyhadgreaterlegalintentiontowardstheagreement 2020 4 13 34 2 3 2Dom AndSoc Agmts Rebuttal Wakelingv Ripley 1951 FactsMr RipleywasanelderlymanlivingaloneinSydney Australia HeaskedhisyoungersisterandherhusbandtomovefromEnglandandlivewithhim Theywouldhavetoleavetheirjobs Inreturnhepromisedtoleavethemhispropertywhenhedied TheymovedinLater theyquarreledandMr Ripleychangedhiswill excludingtheWakelings Theysued 2020 4 13 35 2 3 2Dom AndSoc Agmts Rebuttal Wakelingv Ripley 1951 Ruling fortheWakelings thereisacontractReasoningStrongevidencetorebutthepresumptionofdomesticandsocialagreementsBecauseoftheseriousconsequencesiftheagreementisnothonored theylefttheirjobs thepartiesintendedtoenterabindingcontract Thiskindofcaseissurprisinglycommon 2020 4 13 36 2 3 2Dom AndSoc Agmts Rebuttal Simpkinsv Pays 1955 FactsThedefendant Pays hergrand daughter andalodger allcontributedmoneytowardstheweeklypurchaseofalotteryticket Whentheywon thedefendant whoboughtthetickets refusedtosharethewinnings 750 Theothertwoparticipantssued 2020 4 13 37 2 3 2Dom AndSoc Agmts Rebuttal Simpkinsv Pays 1955 Ruling TheymustsharethewinningsReasoningThepresenceofanoutsider thelodger rebutsthepresumptionthatthisisadomesticorsocialagreementnotmeanttobelegallybindingFurther thisisajointenterprisewithspecificmonetarycontributionsandexpectations makingitmorelikelythatthepartiesintendedtocontractThisisalsoknownasasyndicate 2020 4 13 38 2 3 2Dom AndSoc Agmts Rebuttal Summary reasonstorebutthepresumptionofnolegalintention Ifthehusbandandwifeliveseparately Merrittv Merritt Iftheconsequenceoftheagreementisserious Wakelingv Ripley Ifthesharingofcostssuggestalegalintentiontosharethewinnings Simkinsv Pays 2020 4 13 39 2020 4 13 40 2 4BusinessAgreements 2 4BusinessAgreements TheBusinessAgreementpresumptionPartiesengagedinabusinessorcommercialagreementintendtobelegallyboundThispresumptionisverydifficulttorebutButithasbeendone 2020 4 13 41 2020 4 13 42 2 4 1BusinessAgreements Rebuttal 2 4 1BusinessAgreements Rebuttal Rose FrankCovCrompton 1925 FactsThreecompaniesmadeawrittenagreementtoworktogethertosupplypaper Theagreementcontainedan honorclause sayingthatitwasnotlegallybinding Whenonecompanywithdrewfromtheagreement oneoftheotherssuedforbreachofcontract 2020 4 13 43 2 4 1BusinessAgreements Rebuttal Rose FrankCovCrompton 1925 Thelanguage thisagreementisnotenteredinto noristhismemorandumwrittenasaformalorlegalagreementandshallnotbesubjecttolegaljurisdictioninthelawcourts butitisonlyadefiniteexpressionandrecordofthepurposeandintentionofthepartiesconcernedtowhichtheyeachhonorablypledgethemselves 2020 4 13 44 2 4 1BusinessAgreements Rebuttal Rose FrankCovCrompton 1925 Thelanguage 参考译文 所订立的本协议或备忘录并不是正式的或法律上的协议 得受法院的管辖 它只是记载了合同有关当事人的确定的意愿和光荣的承诺 2020 4 13 45 2 4 1BusinessAgreements Rebuttal Rose FrankCovCrompton 1925 Ruling NotacontractReasoningTheclearlanguageoftheagreementshowsthatthepartiesneverintendedtobelegallyboundClearlanguagewillusuallybetakentoindicatethetrueintentofpartiestoanagreementThisisabusinessagreement butthepresumptionisrebuttedbywhatthepartiessaid 2020 4 13 46 2020 4 13 47 2 4 2BusinessAgreements ConsumerProtection 2 4 2Bus Agmts ConsumerProtection Whatarethepossiblenegativeconsequencesof honorclauses Howwouldyouuseanhonorc