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Lily's mother persuaded her to come to England from Malaysia to study medicine, promising to let her stay in her house. After several years and multiple unsuccessful attempts, Lily had still not passed her medical exams. Although they were previously on very good terms, mother and daughter have fallen out, and Lily's mother is seeking possession of the house. However, Lily insists there had been a contract between them. 


Which option best states the courts' approach in these circumstances?

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The fact that the understanding between Lily and her mother had all the qualities of a domestic agreement means that the presumption would go against there being an intention to be legally bound, making it easier for the mother to succeed in her argument. In Jones v Padavatton [1969] 2 All ER 616, the Court of Appeal held that there was no intention to create legal relations in a similar case involving a parent and child. Domestic agreements, especially those involving close family members living together, are generally presumed not to be legally binding unless there is clear evidence to the contrary.


Key Point: In English contract law, domestic agreements between family members are typically presumed not to be legally binding due to the nature of family relationships. This presumption can be rebutted by clear evidence showing an intention to create legal relations, ensuring that only serious and formal agreements are enforceable.

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