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Given name Yingsheng
Student number 17910691
Unit name Business Law 100
Unit code 11011
Assignment title Case Study
Date submitted 3/5/2015
Student’s comment to tutor
STEP 1: Identify the principles or issue of law
In order for a contract to be legally binding, one of the essential elements is an intention of both parties to enter into a contract…show more content… However, these presumptions can be rebutted under certain circumstances (Monterosso, 2015, p17).
In Balfour v Balfour  2 KB 571, the agreement between the husband and the wife for him to pay maintenance to the wife was held not binding as the court determined the agreement was of a domestic nature and there was no intention for the agreement to be legally enforceable.
Another similar case Jones v Padavatton  1 WLR 328 was in relation to a family agreement between Mrs. Jones and her daughter. In this case, the mother offered a monthly allowance to her daughter to quit her job in America and come to England to study. She also bought a house for her daughter to live in. Later on they had argument and the mother claimed the house. The court held that the agreement between the mother and the daughter occurred in a domestic relationship and was not intended to be binding. Hence, the mother was able to claim the house.
The decision of the courts in the above two cases align with the presumption that if both parties are in a domestic relationship it would be regarded that there was no intention for the contract to be legally binding. This has been applied in a recent case Woodward v Johnston  2 Qd R 214 where the arrangement between the husband and