ACCA LW · Chapter 2 · Question 11 of 12
Which of the following agreements is presumed NOT to be intended to create legal relations?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) An arrangement between a husband and wife living together about household spending money
Explanation
Domestic and social arrangements are presumed not to be legally binding (Balfour v Balfour). The presumption may be rebutted, for example where spouses have separated and record their agreement (Merritt v Merritt). Commercial agreements, including those between employer and employee, are presumed to be legally binding unless clearly stated otherwise.
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