MASENO UNIVERSITY

SCHOOL OF LAW, KISUMU CAMPUS

LSB 109: LAW OF CONTRACTS I
Week 6: Contractual Intention and Form Group 2

1. What is the meaning of ‘intention to create legal relations?’

2. Discuss the significance of significance ‘intention to create legal relations?’
3. What is the test for contractual intention?
4. Discuss the following cases and their significance:
a. Jones v Padavatton, Haggar v Pacido, Parker v Clarke
b. Balfour v Balfour, Merritt v Merrit
c. Julian v Fruby, Simpkins v Pays
d. Rose and Frank Co v Crompton Bros, Edwards v Skyways, Esso
Petroleum v Commissioners of Customs and Excise

Problem Question

Discuss whether the parties had an intention to create legal relations.

Robert and Theresa have spent their married life in a house which they bought in
joint names, with the help of a mortgage which has six years still to run. During a
discussion about their separation, they agree that Robert will move out of the house,
and if Theresa meets the mortgage repayments for the next six years, Robert will, at
the end of that time, transfer sole ownership of the house to her. Theresa pays the
mortgage for a year, at which point Robert says he has changed his mind, and does
not intend to transfer his share of the house to her. Advise Theresa.
How, if at all, would your advice differ if the arrangement was made during happier
times in the marriage. What would your advise be if the latter agreement was drawn
up by their respective legal representatives?

Readings

1. C Turner, Contract Law, 2e: Hodder Education, p 38-42, 43-46

2. C Elliott, & F Quinn, Contract Law, 7e: Pearson Education, p 59-67, 82-87
3. R.W. Hodgin, Law of Contract in East Africa, p 62-65, 12-18
4. G.Treitel, The Law of Contract, 162-173, 176-188