Chapter 8 End of Chapter Questions

. A is moving to London to start medical school. B is A's father. B promises to pay A £1000 a month for rent and amenities. B only makes a payment in A's first month and London and fails to pay again. Is there a presumption that B intended to be bound by his promise?

Yes

No

. In which of the following situations would the presumption that there is no intention to create legal relations in a domestic setting be rebutted?

Mr and Mrs Jones are married. Mr Jones has been adulterous and Mrs Jones has moved out of the marital home. Mr and Mrs Jones decide to split up and sell their home, and reach an agreement as to the proceeds from the sale of that home.

Daniel and Dale are brothers, who both live with their parents. Daniel hasn't spoken to Dale for a week. Daniel agrees to sell his games console to Dale if Dale does the washing up for a year.

Katie is Matthew's sister. Katie agrees to take Matthew to the airport for £20.

None of the options given is correct.

. Oat Crunch breakfast cereal included an advertisement on the front of each box indicating that if customers purchase 3 boxes and send the relevant coupons away, each customer can get a free novelty breakfast bowl. Bradley sends away the coupons but does not receive the bowl. He alleges Oat Crunch is in breach of contract. Is there a presumption that Oat Crunch intended to create legal relations with its customers?

Yes

No

. A Ltd approaches Big Bank for a loan. Big Bank asks C plc, which is A Ltd's parent company, to guarantee the loan. C plc refuses but instead sends Big Bank a letter saying that it was C plc's policy to ensure that A Ltd would be in a position to repay the loan. A Ltd goes into insolvency. Can Big Bank sue C plc?

Yes.

No.

. In which of the following situations will the court be likely to find that there was intention to create legal relations such that a contract has been created?

A sends B an email accepting B's offer to supply sandwiches to all A's employees for lunch for £1000 per month 'subject to contract'. At A's request, while negotiations on the terms continue, B provides A's employees with their sandwiches. Negotiations break down after three months. B sues for A for £3000.

A sends B an email accepting B's offer to supply sandwiches to all A's employees for lunch for £1000 per month 'subject to contract'. Negotiations then break down.

A sends B an email accepting B's offer to supply sandwiches to all A's employees for lunch for £1000 per month. Before B starts, A asks B to renegotiate the terms but to provide A's employees with their sandwiches in the meantime. Negotiations break down after three months. B sues for A for £3000.

All of the options given are correct.

. Which of the following situations is an exception to the principle that an intention to create legal relations is presumed in the context of 'commercial agreements'?

An agreement between a trade union and employers.

An agreement between trade union members.

An agreement between an employee represented by a trade union and his employer.

All of the options given are correct.

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