Tuesday, 16 August 2011

Law of Contract (Intention to Create Legal Relations)

2 Categories :-
1. Domestic, family and social agreements
2. Business Agreements


  • An agreement without an intention to create legal relations does not bind the parties to the agreement.
  • In domestic, family and social agreements, the parties are presumed not to have any intention to create legal relations.
  • The presumption of no intention may be rebutted if there is a proof of true intention of the parties.
  • Uncertainty of words in an agreement may render the agreement unenforceable.
  • In business or commercial agreements, the parties are presumed to have the intention to create legal relations.
  • Various clauses used in business or commercial agreements have the effect that negates the contractual intention.

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