Parker v Clark [1960] 1 WLR 286

Material Facts:

The Clarks invited their niece and her husband, the Parkers to live with them in their house. The Parkers communicated to the Clarks that moving in with them will require that the Parkers sell their own house. In response, the Clarks wrote a letter to the Parkers promising to give a share of their house to the Parkers, in their will. The Parkers sold their house and moved in with the Clarks. The Parkers later fell out with the Clarks and were asked to move out of the house. The Parkers sued for breach of contract.

Issues:

1. Whether the agreement between the Parkers and the Clarks that the Clarks will give them a share in their house upon the death of the Clarks was a valid contract.

Argument of the claimant:

1. That the agreement between them and the Parkers was contractual in nature and was intended to create legal relations.

2. That the Parkers sold their home on the assurance of a share in the Clark’s house upon the death of the Clarks.

Argument of the defendant:

1. That their agreement with the Parkers was not intended to create legal relations.

Holding:

1. The agreement between the Parkers and the Clarks was a valid contract.

Ratio Decidendi:

The court ruled that the Clarks’ letter to the Parkers stating the willingness of the Clarks to give the Parkers a share in their property constituted a valid offer and that the language used in the letters exchanged between the Parkers and Clarks indicated that both parties intended to create legal relations.