preview

The Existence And Legal Obligations Of A Contract Between Margaret And Emily

Better Essays

1. Introduction The given scenario pertaining to, the existence and legal obligations of a contract between Margaret and Emily, raises question upon certain aspects of contract law. Those being, intention, consideration, contractual capacity and equity. Bellow will be a detailed analysis on the issues raised, legal reasoning and interpretation of the issues as to advise Emily on how to resolve this domestic dispute. 2. Margaret and Emily- Common Law The Primary concern is whether Emily holds legal entitlement over the unsold dolls in Margaret’s antique store. Margaret agrees on July 2006 to give her daughter Emily the once she has retired, however, she has now decided to give them to charity. Considering the domestic relationship between the two parties, an initial presumption states that no intention to create legal obligations exists, and the family discussion is merely conducted in good faith and based on a mutual trust. This does not amount to a contract as demonstrated in Jones v Padavatton where this rule is applied to the mother and son relationship of the parties, concluding that no intention to enter legal relations exists and thus the parties are not bound. However, this presumption may be rebutted, based on the facts that state that this arrangement was “agreed” upon, and Emily manifests valid consideration ‘quid pro quo’ (in exchange) for Margaret’s promise. The promisee, Emily, provides executory consideration to work in the antique store in exchange for

Get Access