Contract
Did Amy bound by her promise? In Amy’s case, have no doubt, Amy is the offeror who provides an offer to Beryl and her family who have accepted it by receive Amy’s money or others. However, there are requirements to form a valid contract other than offer and acceptance, that are, intention to create legal relation and consideration. What is consideration? It can be describe as being something which represent either some benefit to the person making a promise or some detriment to the person to whom the promise is made. The term consideration is given to the subject that is exchanged in a contract.1 It is a fundamental prerequisite in English contract law. 2 The courts has explained the consideration in the case of Dunlop v Selfridge3 in terms of purchase and sale. The claimant must show that he or she has bought the defendant’s promise by doing, giving or promising something in return for it. The basic rule is a promise will not be enforceable unless it is supported by consideration.
While the element of intention to create legal relation too will affect the validity of promises between Amy and Beryl, David, and Charlie. So, there is a question that is there an intention to create legal relation between Amy and each of Beryl’s family? As far as this topic is concern, contract will be divided into domestic and social agreement and commercial transaction on the other hand. For the domestic and social agreement, there is a rebuttable presumption that the parties do not intend to create legal relation. 4
This is arose in Jones v Padavatton.5 Claimant offered a monthly allowance to her daughter if she would give up her job and train to be a barrister in England. Later, claimant bought a house where daughter live and received rent from other tenants. Later, when they quarrelled, her mother sought possession of the house. The court held that, neither of the agreement was intended to create legal relations, they were merely family arrangement. Hence, the mother was
While the element of intention to create legal relation too will affect the validity of promises between Amy and Beryl, David, and Charlie. So, there is a question that is there an intention to create legal relation between Amy and each of Beryl’s family? As far as this topic is concern, contract will be divided into domestic and social agreement and commercial transaction on the other hand. For the domestic and social agreement, there is a rebuttable presumption that the parties do not intend to create legal relation. 4
This is arose in Jones v Padavatton.5 Claimant offered a monthly allowance to her daughter if she would give up her job and train to be a barrister in England. Later, claimant bought a house where daughter live and received rent from other tenants. Later, when they quarrelled, her mother sought possession of the house. The court held that, neither of the agreement was intended to create legal relations, they were merely family arrangement. Hence, the mother was
Bibliography: Halson, Rogel. Contract Law. 2nd ed. London: Longman, 2013. Print. Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] UKHL 1, [1915] AC 847 White v Bluett (1853) 23 LJ Ex 36 Foakes v Beer (1883-84) LR 9 App Cas 605 House of Lords Hirachand Punamchand v Temple [1911] 2 KB 330 Court of Appeal Central London Property Trust v High Trees House [1947] KB 130 High Court Hughes v Metropolitan Railway (1876-77) LR 2 App Cas 439 House of Lords