Contract Law - Certainty and the Intention to Create Legal Relations

3. Certainty and the Intention
to Create Legal Relations
3.1 Certainty
Vague agreements
if agreement is uncertain, contract argued is void
Incomplete agreements
courts will not enforce agreements missing essential elements
parties agree to price at later date
May & Butcher v The King (1929)
agreement to agree is unenforceable
Parliament doesn’t want courts to have to enforce obligations to pay price
when it hasn’t been ascertained
therefore incomplete

3.2 Intention to create a legal relationship
(rebuttable) presumptions
1. domestic and social agreements lack intention to create a legal
relationship
2. commercial agreements intended to create a legal relationship between
parties
burden is on person claiming there’s no intention to create legal
relations

3.3 Executory and executed agreements
Basis of distinction
often a gap between completing agreement and performance


3. Certainty and the Intention to Create Legal Relations 1