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Intention to create legal relations

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Intention to create legal relations

  • This topic has 4 replies, 3 voices, and was last updated 3 years ago by mrjonbain.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • May 12, 2022 at 4:18 pm #655480
    TMaC123
    Participant
    • Topics: 20
    • Replies: 24
    • ☆

    Hi Mike,

    Can you help clarify this one:

    Which of the following indicates that the parties intend to be legally bound?

    – A letter of comfort
    – An agreement between a husband and wife to transfer property between them
    – An agreement ‘binding in honour only’

    The answer is an agreement between a husband and wife to transfer property between them.

    I thought from the lectures that a husband and wife operated as a single unit and thus couldn’t enter into a contract with themselves. Does the fact that it was a transfer of property make a difference?

    May 12, 2022 at 8:13 pm #655495
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    I believe that it does! I would be happier if the question had said ‘a written agreement to transfer property …’ but I believe that an agreement to transfer property is one of the situations where it is taken to be indicative of intention

    If this were in an exam, I would be inclined to tackle the question from an elimination perspective!

    Clearly a comfort letter is not indicative of intention

    And clearly also an agreement binding in honour only cannot be indicative of intention

    So that doesn’t leave you with many choices!

    OK?

    May 13, 2022 at 9:00 am #655529
    TMaC123
    Participant
    • Topics: 20
    • Replies: 24
    • ☆

    Thanks Mike, that makes sense.

    Just wanted to feedback that I think your notes and lectures are very good. They give you exactly the info you need to work through the exam kit quickly while getting most of the answers correct, which is ideal when you are working full time and short on time to study.

    May 13, 2022 at 3:18 pm #655560
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Well, that’s very welcome feedback indeed! Thanks for those kind words

    I’m sure that you’ll find the rest of the OpenTuition lectures and notes equally helpful

    May 15, 2022 at 2:07 pm #655694
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2473
    • ☆☆☆☆☆

    Apologies in advance for crashing the thread.Agree with your answer and analysis. Personally, I find the “property” part a little too amorphous/ambiguous. Think there is an indication it implies a building or land or similar. However, given lack of specificity, with a different interpretation and question context a different answer could apply.For example, if “property” being transferred were a dressing gown this would be considered differently from a mansion being transferred. In practical terms, unless a separation/divorce is happening or going to happen, I would suggest taking legal action against your spouse is not a good idea. Hope above thoughts are of some use.

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