Court: Court of Appeal (Civil Division)
Judgment Date: 27 April 1970
Where Reported: [1970] 1 W.L.R. 1211; [1970] 2 All E.R. 760
Legal Issues in Merritt v Merritt
The legal issue in Merritt v Merritt revolved around the determination of whether an agreement between a husband and wife, made during a period of separation, was intended to create legal relations.
The central question was whether the agreement regarding the ownership of the matrimonial home was binding and enforceable, considering the circumstances of the separation and the intentions of the parties involved.
The legal issue also encompassed the examination of the surrounding circumstances and the intentions of the parties to determine the existence of legal relations and the enforceability of the agreement made during the period of separation.
Merritt v Merritt also delved into the consideration of the nature of agreements made between spouses during a period of separation and their legal implications, particularly in the absence of formal contractual arrangements.
Material Facts in Merritt v Merritt
The case involved a husband and wife who had married in 1941 and built a house as their matrimonial home in 1949.
The house was in the husband’s name, with a substantial mortgage. In 1966, the parties agreed to put the house in their joint names following an agreement early in the year that reflected the legal position when a house is acquired by a husband and wife through their financial contributions.
However, the husband subsequently formed an attachment to another woman, left the house, and went to live with her.
The wife then pressed for an arrangement for the future, leading to a discussion in the husband’s car where he agreed to make a monthly payment to the wife and transfer the property into her sole ownership upon the completion of the mortgage repayment.
Judgment in Merritt v Merritt
The Court held that the agreement regarding the ownership of the matrimonial home was one that was intended to create legal relations and was binding upon the parties.
The judgment emphasised that, in the circumstances of separation, agreements made between spouses are presumed to be intended to create legal relations, particularly when the parties are not living in amity but are separated or about to separate.
The court also highlighted the presence of valid consideration for the agreement and the intention of the parties to create legally binding obligations – see Parker v Clark (1960).
The Reason for the Decision in Merritt v Merritt
The court’s decision was grounded in the recognition of the surrounding circumstances and the intentions of the parties in determining whether the agreement was intended to create legal relations.
The judgment emphasised that, in cases of separation, agreements made between spouses are presumed to be intended to create legal relations, particularly when the parties are not living in amity but are separated or about to separate.
The court also underscored the presence of valid consideration for the agreement, the intentions of the parties, and the absence of uncertainty in the terms of the agreement, highlighting the binding nature of the agreement in the circumstances of separation.
The decision was influenced by the recognition of the unique nature of agreements made between spouses during periods of separation and their legal implications, emphasising the presumption in favour of the creation of legal relations in such circumstances.
The judgment underscored the importance of looking at the surrounding circumstances to determine whether reasonable people would regard the agreement as intended to be binding, particularly in cases of separation or impending separation – see Balfour v Balfour.
Legal Principles in Merritt v Merritt
The case of Merritt v Merritt established the legal principle that agreements made between spouses during periods of separation are presumed to be intended to create legal relations, particularly when the parties are not living in amity but are separated or about to separate.
The decision underscored the importance of considering the surrounding circumstances to determine whether reasonable people would regard the agreement as intended to be binding, particularly in cases of separation or impending separation.
This principle set a precedent for the recognition of the presumption in favour of the creation of legal relations in agreements made between spouses during periods of separation, emphasising the enforceability of such agreements in the absence of amicable cohabitation.
