Chapter 7 Self-test questions

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. In the leading case in this area, Balfour v. Balfour [1919] 2 KB 571, Atkin LJ suggested that the basis for the presumption that the parties to a domestic agreement do not intend to create legal relations is derived from:

A principle of public policy correct incorrect

The lack of legal consideration in the domestic context correct incorrect

The intentions of the parties involved correct incorrect

The lack of evidence in domestic agreements correct incorrect

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. Harry and his mother, Janet, agree to go halves on a cheap fishing boat which they both intend to use for pleasure, but which will also serve to help Harry set up his new fishing business. In which of the following cases is the court most likely to find an intention to create legal relations?

Janet finds herself in financial difficulties. Before sale, she decides not to go through with the purchase and informs Harry that she is no longer able to participate. correct incorrect

Janet and Harry have an argument about how they will share the use of the boat. They end up not speaking to each other. Harry decides to borrow the remaining money and buy the boat anyway. Afterwards, he tries to recoup Janet's share. correct incorrect

Harry pays for the boat by cheque on the day and Janet promises she will transfer her share directly into his account. Janet dies before she has a chance to do this. Harry is now in need of Janet's share to maintain the boat and his fledgling fishing business. correct incorrect

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. Two neighbours (X and Y) enter into a signed written agreement to maintain the sculpted hedge between their respective gardens. The agreement contains a clause explicitly preventing the agreement from amounting to a contract in law. Instead the parties agree in good faith to 'honourably pledge' themselves to maintain and pay for all work done to the hedge in alternate years. Five years later, X fails to maintain the hedge. As a consequence the hedge grows to an unruly height and is cut down by the council, which considers it to be a public nuisance. Y tries to sue X for breach of contract. What happens?

The court finds no intention to create legal relations correct incorrect

The court finds an enforceable contract correct incorrect

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