Comfort Letters and Legal Relations
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Comfort Letters and Legal Relations

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@AppealingSamarium

Questions and Answers

What is the purpose of a comfort letter?

To explicitly rebut the usual inference of a legally binding commitment

What is the significance of intention in relation to an offer?

It is necessary to make the offer legally binding

Which of the following is a characteristic of an enforceable contract?

It is an agreement where the parties intend to create legal relations

What is the primary purpose of honour clauses in an agreement?

<p>To create a moral obligation to perform</p> Signup and view all the answers

In what type of agreements is the intention to create legal relations most important?

<p>Domestic and social agreements between friends or family members</p> Signup and view all the answers

What is the result of an explicit rebuttal of the usual inference of a legally binding commitment?

<p>It disclaims any legal obligation</p> Signup and view all the answers

In the case of Soulsbury v Soulsbury, what was the agreement between the two former spouses?

<p>An agreement to forgo maintenance payments in return for a bequest</p> Signup and view all the answers

What is a 'Rebuttable Presumption'?

<p>A presumption made by courts as to a certain state of facts until the contrary is proved</p> Signup and view all the answers

What type of agreement was involved in the Radmacher v Granatino case?

<p>Pre-nuptial agreement</p> Signup and view all the answers

What was the outcome of the Radmacher v Granatino case?

<p>The husband was not entitled to an award of £5.5 million</p> Signup and view all the answers

What did Lady Hale argue in the Radmacher v Granatino case?

<p>That policy considerations justify a different approach to agreements made before and after marriage</p> Signup and view all the answers

What principle was not mentioned in the text?

<p>Arm's length principle</p> Signup and view all the answers

What is the principle referred to when parties have no existing ties of family, friendship, or corporate structure?

<p>Arm's length principle</p> Signup and view all the answers

Which type of clause is referred to in Rose and Frank Company v JR Crompton and Brothers Ltd?

<p>Honour clause</p> Signup and view all the answers

In what circumstances will the court often find a contractual intention?

<p>When parties deal at arm's length</p> Signup and view all the answers

In Blue v Ashley (2017), what was the unusual aspect of the meeting place that influenced the court's decision?

<p>The meeting took place in a pub</p> Signup and view all the answers

Why might a commercial party not want an agreement to be an enforceable contract?

<p>To avoid being legally bound</p> Signup and view all the answers

What is the purpose of a comfort letter?

<p>To provide assurance without creating a legally binding contract</p> Signup and view all the answers

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