Merritt v Merritt (1970) concerns a separated husband’s promise to transfer the matrimonial home to his wife, after she paid off the mortgage. The court ruled that since the couple were not living in harmony, the agreement was intended to create legal relations, making it enforceable.
Intention to Create Legal Relations: The court established that when parties are separated or about to separate, agreements between them are presumed to be legally binding, unlike those made during harmonious domestic situations. This was a key factor in upholding the wife's claim over the property.