Simpkins v Pays is a case between three occupants of a house. The people concerned are a Grandmother her granddaughter and a lodger. Each week the three entered a competition that was run by the newspaper called Sunday Empire News. The weekly completion coupon was submitted each time in the name of the Grandmother (Ms Pays). The three would make forecasts on the understanding that if they won Ms Pays would distribute the money equally between them.
One week the forecast made by Ms Simpkins won a prize of £750 but this was in the name of her grandmother Ms Pays. This resulted in the grandmother refusing to pay out an equal share to her granddaughter.
This resulted in the lodger and Ms Simpkins taking legal action in order to claim the equal share of the winnings. The three had a verbal agreement that was the understanding that any winnings would be split equally between them. This had not been carried out when thy won the cometition.
Simpkins v Pays Outcome: Held
The court found that there was a legally binding contract despite the family connection. This was due to the fact that the lodger was also party to the contract. This rebutted the presumption of no intention to create legal relations.