Lack of intention to create a legal relationship

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Reference no: EM13969568

1. Explain the circumstances in which the courts will refuse to enforce agreements as contracts because of a lack of intention to create a legal relationship.

2. On 11 May Andrew wrote to Ben offering to sell him 200 bags of potatoes at £10 per bag. On 13 May, Ben posted a reply accepting Andrew's offer but adding that if he did not hear from Andrew, he would assume that the price included delivery to his (Ben's) house. The following morning, before Ben's letter arrived, Andrew heard a rumour that the price of potatoes was about to slump dramatically. Andrew immediately sent a fax to Ben, stating that 'the price includes delivery'.

Ben received Andrew's fax at 10 am on 14 May, whereupon he immediately posted a letter confirming his acceptance of Andrew's terms. Over lunch, however, Ben also heard the news about a slump in the price of potatoes, whereupon he sent Andrew a text message stating: 'decline yr offr of pots'.

The price of potatoes has now fallen to £7 per bag and Ben refuses to accept delivery of Andrew's pricey potatoes.

Advise Andrew.

Reference no: EM13969568

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