Intention to create legal relations- FS

Question 1

What is Intention to Create Legal Relations

Answer 1

A fundamental requirement for contract formation. Courts assess whether parties intended the agreement to be legally binding.

Question 2

What is the presumption for commercial agreements?

Answer 2

There is a strong rebuttable presumption that the parties intended to create legal relations.

Question 3

What is the presumption for domestic or social agreements?

Answer 3

The presumption is that the parties did not intend to create legal relations.

Question 4

How can the presumption in commercial agreements be rebutted?

Answer 4

Only by clear, express language that the agreement was not intended to be legally binding.

Question 5

Can trivial subject matter in a commercial context defeat the presumption of legal intent?

Answer 5

No. Even trivial promotions may create binding obligations if they serve commercial objectives.

Question 6

What is required to rebut the domestic presumption?

Answer 6

Strong evidence that the parties intended their agreement to be legally enforceable (e.g. written agreement, monetary terms).

Question 7

What is Rebuttable Presumption

Answer 7

A default legal assumption that holds unless disproven with sufficient contrary evidence.

Question 8

In a handshake deal between friends to sell a bicycle, what presumption applies?

Answer 8

The domestic presumption applies (no legal intent), but it may be rebutted by evidence of serious intent and agreed terms