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Review Your SQE 1 Practice Records

Examination Timing: 00H01M17S

A father and his son entered a weekly newspaper competition. They had agreed to share the cost of entry, although the application was solely in the name of the father. One week they won first prize and were awarded £10,000. The father received the money by way of a bank transfer to his own personal account. He is refusing to share the money with his son. 


Which of the following best reflects the options for the son?

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The son can start a claim against his father and should prove the arrangement was a joint enterprise. This question concerns whether a domestic arrangement can be judged as an intention to create legal relations. There is a presumption that domestic arrangements do not create legal relations. However, in the case of Simpkins v Pays [1955] 1 WLR 975, a similar situation occurred where a grandmother, her daughter, and their lodger entered a weekly newspaper competition. They agreed to share the cost of entry, and the arrangement was held to be a joint enterprise. The court found that there was an intention to create legal relations because cash was contributed with the expectation of sharing any prize. Therefore, the son can argue that the arrangement was a joint enterprise, making it legally binding. 


Key Point: In domestic arrangements, courts can find an intention to create legal relations if the arrangement involves a joint enterprise where parties contribute cash with the expectation of sharing any benefits.

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