Simpkins v Pays [1955] 1 WLR 975

Material Facts:

The plaintiff, Skimpins, living in the defendant’s house, regularly participated in “News of the World” bets with the defendant Mrs Pays and the defendant’s granddaughter. The bet coupons were submitted in the name of Mr Pays and there was an agreement between the three parties that they would share any proceeds from the bets. Upon winning through a coupon submitted by the defendant’s granddaughter, Mrs Pays claimed sole possession of the prize money, and Skimpins sued.

Issue:

1. Whether or not the agreement between Mrs Pays, her granddaughter, and Skimpins was made with the intention to create legal relations.

Holding:

1. That the agreement between the three parties was made with the intention to create legal relations.

Ratio Decidendi:

The court ruled that whilst the contract occurred in a domestic setting, there was a mutual agreement that when there was success from participating in the newspaper competition, irrespective of who won, that the prize money would be shared equally amongst the parties.