Chapter 4

S2(d) CA1950 – Consideration

at the desire of the promisor, the promisee or any other person has done or abstained from
doing, or does or abstains from doing, or promises to do or to abstain from doing something
such act or abstinence or promise

Curie v Misa (consideration under common law as defined in the case xxx)

Consideration means ‘some right, interest, profit or some forbearance, detriment, loss or
responsibility given, suffered or undertaken by the other (the promisee)’.

Intention to create legal relations

An agreement reached between an offeror and an offeree will be a legally binding contract
only if the parties intended that they should be legally bound. In other words, both parties
should agree that there are legal consequences if the promise is broken.

Case Summary

 Intention to create legal relations

i) Social & domestic agreement

Balfour v Balfour [1919]

In xxx, is a domestic agreement between husband and wife. This is a family agreement which
the presumption is not intended to create legal relations without any legal consequences. The
court held that the presumption is they did not breach their promises.

Meritt v Merrit (1970)

The agreement was binding. The Court of Appeal has distinguished the case of Balfour v
Balfour on the grounds that the parties were separated. The parties which the husband and
wife have separated, and it is generally considered that they do intend to be bound by their
agreements. The written agreement signed was further evidence of an intention to be bound.