Rose and Frank Co -v- J R Crompton & Bros Ltd; CA 1923

The court considered whether a contract had been brought into existence.
Held: Scrutton LJ said: ‘Now it is quite possible for parties to come to an agreement by accepting a proposal with the result that the agreement does not give rise to legal relations. The reason for this is that the parties do not intend that their agreement shall give rise to legal relations. This intention may be implied from the subject matter of the agreement, but it may also be expressed by the parties. In social and family relations such an intention is readily implied, while in business matters the opposite result would ordinarily follow.’
Atkin LJ said: ‘To create a contract there must be a comon intention of the parties to enter into legal obligations, mutually communicated expressly or impliedly. Such an intention ordinarily will be inferred when parties enter into an agreement which in other respects conforms to the rules of law as to the formation of contracts. It may be negatived impliedly by te nature of the agreed promise or promises, as in the case of offer and acceptance of hospitality, or some agreements made in the course of family life between members of a family.’

Court: CA
Date: 01-Jan-1923
Judges: Scrutton LJ
References: [1923] 2 KB 261, [1924] All ER Rep 245
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