Balfour v. Balfour
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Issues
Was the agreement to pay the allowance enforceable?
Ratio
Closely associated parties (such as spouses) will be presumed to not have intended to create legal relations in the absence of clear evidence to the contrary.
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Rose and Frank Co. v. J.R. Crompton and Bros. Ltd.
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Issues
Can the parties agree to a clause that renders the contract not legally binding?
Ratio
Although it is generally presumed that the intention to create legal relations is present in the making of commercial arrangements, where parties wish to be bound in honour only and so express themselves, the absence of intent is established.
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Toronto Dominion Bank v. Leigh Instruments Ltd. (Trustee Of)
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Issues
Did the Letters of Comfort create a legally enforceable obligation?
Ratio
In general, letters of comfort do not impose binding contractual obligations between the lender and the provider of the letter of comfort, as there is no intention to create legal relations.
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Promise Under Seal
Royal Bank v. Kiska
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Issues
Was the guarantee effectively sealed?
Ratio
Promises made in a sealed document are enforceable, notwithstanding the absence of consideration.
However, mere recitals are not sufficient to create a contract under seal. The respective words “Signed, Sealed and Delivered” are merely anticipatory of a formality, which must be observed and are not a substitute for it.
In the Supreme Court of Canada decision in Friedmann Equity Developments Inc. v. Final Note Ltd., the Supreme Court affirmed this principle, stating “to create a sealed instrument, the application of the seal must be a conscious and deliberate act. At common law, then, the relevant question is whether the party intended to create an instrument under seal.”
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Requirement of Writing
Dynamic Transport Ltd. v. O.K. Detailing Ltd.
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Issues
Does the description of land in this case in this case satisfy the Statute of Frauds writing requirement of certainty?
Ratio
If there is uncertainty of language, the courts should look to the conduct and intent of the parties and determine what the parties reasonably intended.
Oral evidence is admissible for the purposes of explaining a term of the agreement.
Courts will strain to find that a memorandum in writing is sufficient to satisfy the Statute of Frauds.
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Part Performance
Deglman v Guaranty Trust Co.
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Issues
Can the nephew rely on the doctrine of Part Performance to obtain an order for specific performance of a contract relating to lands which are unenforceable at law by reason of the Statute of Frauds?
Ratio
In order to invoke the doctrine of Part Performance, the acts must be unequivocally referable in their own nature to some dealing with the land.
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Thompson v Guaranty Trust Co.
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Issues
Whether there had been sufficient acts of part performance on the part of the appellant to avoid the application of the Statute of Frauds?
Ratio
For the doctrine of part performance to apply, the acts allegedly constituting part performance must unequivocally, in their own nature, point to some dealing with the land in issue.
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