Chapter 8 Self-test questions

Intention to create legal relations

Quiz Content

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. 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?

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

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. 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?

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. 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?

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. 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?

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. 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'?

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