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Intro to Commercial Law: Social and Domestic Agreement v Commercial Agreements

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Victoria Tay

on 2 August 2014

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Transcript of Intro to Commercial Law: Social and Domestic Agreement v Commercial Agreements

Introduction to Commercial Law
design by Dóri Sirály for Prezi
Group presentation by Pamela & Victoria
Legal Issue
What kind of problems do social and domestic agreements create for contracts versus business agreements?
Social and Domestic Agreements
Business agreements
Presumption is that domestic and social agreements are
not intended to have legal relations.

Purpose of such a requirement is to sift out cases that are actually inappropriate for court action and to prevent parties from abusing such agreements.
it is assumed that the parties
intended
the agreement to have
legal consequences.

Type of Cases
Social and Domestic Agreements:
No intent
Rebuttable
Commercial agreements:
Honour clauses
Letter of Intent
No intent
Mother

promised to pay daughter $200 /month if she gave up her job in the US and went to London to study for the bar
Miscommunication between assumption of currency given, which was not enough for the daughter
Mother then bought a house for her
It was sought for procession after her daughter married and did not complete her studies
Fiduciary duty
Merely a family agreement
not intended to be binding
Jones v Padavatton [1969] 1 WLR 328
De Cruz Andrea Heidi v Guangzhou Yuzhitang Health Products Co Ltd and Others (2003)
Intent
(Rebuttable)
TQ v TR and Another Appeal [2009] 2 SLR 961; [2009] SGCA 6
I
Social & Domestic Agreements
Social & Domestic Agreements
Intent
Commercial agreement
Edwards v Skyways [1964] 1 WLR 349
Edward was an airline pilot working for Skyways to be retrenched
Skyways said that if he withdrew his contributions to the company pension fund, they would pay him the equivalent of company contributions in an ex gratia payment
It was agreed and he withdrew his contributions
Company then ran into further financial difficulty and went back on their promise
Agreement is enforced
as it was made in an business context
Lee Chiang Theng v Public Prosecutor and other matters [2011] SGHC 252
Contractor brought a total of 610 workers to work on expected mega projects by Halcyon Offshore Pte Ltd
However projects did not go through
Contractor tried appealing but contract between the contractor and Halcyon
clearly stated
all responsibility of workers laid on the contractor
Contractor was charged with 100 over charges such as lack of work, failure of payment, overcrowded workers’ accommodation, employment without valid work permits etc.
No Intent
Commercial agreement
Jones filled in a winning entry and sent it off to Littlewoods Pools.
Littlewoods disputed ever receiving the entry and denied the fact that they would be legally obliged to pay out even if they had received the entry due to the
binding in honour only
clause
Argued that the decision in Jones v Vernons (very similar case) was outdated and should be overruled.
Court was bound by the decision in Jones v Vernon Pools the existence of the binding in honour only clause demonstrated an intention that the parties
did not intend to be legally bound.
Ferrera v Littlewoods Pools [1998] EWCA Civ 618
Honour Clauses
Letter of Intent
The Hongkong and Shanghai Banking Corporation Limited v Jurong Engineering Limited [2000] 2 SLR 54
found that the parties
did not intend
the letter of awareness to create legal relations.
the letter, on its plain meaning, merely imposed vague obligations on Jurong in relation to Huge's liabilities.
HSBC
took the risk
and extended credit facilities to Huge so as to achieve their main objective of establishing business relations with Jurong.
Conclusion
Social and Domestic Agreements
Business agreements
not intended to have legal relations.
the agreement was intended to have legal relations.
Consider all facts and factors relating to case.
END
Thank you for your kind attention!
Intention
-Favor for a friend
Consideration
-“However, even if a secret profit or commission was made from the plantiff for getting her the Slim 10 pills, that doesn’t elevate the favour into a commercial transaction. It merely means the friend doing the favour has decided to keep some part of the discount for himself,perhaps to compensate for his time and expense, without informing the recipient”
---Tay J,

THEREFORE,
-
No intention for legal relation
Husband is a Dutch citizen while the wife is a Swedish citizen
Prenuptial agreement was executed on 26 August 1991 and prepared by a Dutch civil law notary in Wassenaar, the Netherlands
Stated that there was to be no community of property
common law of England, so far as it was part of the law of Singapore immediately before 12th November 1993, shall continue to be part of the law of Singapore
Parties did not seek to argue that agreement was not valid here either
Clear intent
Balfour v Balfour [1919] 2 KB 571
Mr Balfour was to travel to Sri Lanka for work
However Mrs Balfour could not due to rheumatic arthritis
She was promised with £30 a month until she came back to Sri Lanka
In 3 years they had drifted apart and Mr Balfour wrote saying it was better apart
Mrs Balfour sought to enforce the agreement
rebuttable presumption
against an intention to create a legally enforceable agreement when the agreement is domestic in nature
Merritt v Merritt [1970] EWCA Civ 6
The Merritts jointly owned a house but were separated when they signed their contract
Whereby he would pay her £40 per month to meet mortgage payments
And if she paid all the charges in connection with the mortgage until it was paid off he would transfer his share of the house to her
Mr. Merritt refused to transfer the house
Agreement was more than a domestic arrangement
Rubutted with clear intention
Full transcript