Course Title: ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS
Course Code: QCF/L5/0215
Assignment Number: 01
LCB Student number: LCB/2867
Student Name: DK. SITI NURUL HAFIZZAH BINTI PG. ALI HASAN

Contents
Task 1 a)3-4 1 b)4-5 1 c)5-6
Task 2 a)7 2 b)7-8 2 c)8
Task 3 a)9 3 b) 10
Task 4 a)11 4 b) 12
Task 5 a)13 5 b) 14
Task 6 a)15-16 6 b) 16-17
Reference List18

Task 1 TASK 1-1.1
a) For one to form a valid contract the party must fulfill the essential elements required for the function of a valid contract and one of them is to have the intention to create legal relations. It is simply defined as an intention to enter a legally binding agreement or contract. Without the intention, the contract may only become a mere promise because there is no legal binding between the contracting parties and the contract can be assumed as not legal. It is not sufficient for only one party to have the intention but not the other as the presence of mutual understandings and intentions between the contracting parties are needed to legally binding a contract. However, there is no intention to create legal relations when it comes to cases that involve with social, domestic and family arrangements.

Balfour v Balfour 1919:

“The defendant (the husband) promised to pay his wife £30 a month as health maintenance when she could not return to Ceylon with him under the doctor’s advice. When their marriage ended in divorce, the wife sued for the monthly allowance which the husband no longer paid.
The Court of Appeal held that there was no enforceable contract because the parties did not intend to create legal relations. The agreement between the couple was made during their marriage life and such agreement is presumed to be informal and was not intended to be legally binding.”

It is important to be aware