All posts tagged: Intention to create legal relations

Intention to Create Legal Relations in Contract Law: Meaning, Tests, and Legal Effect

Contract law is concerned with enforcing promises that parties intend to be legally binding. Not every promise, agreement, or arrangement made between persons is meant to attract legal consequences. Many agreements are made daily in homes, among friends, and within families based on trust, affection, moral duty, or social convenience. The law does not interfere with such arrangements unless the parties clearly intended that their agreement should be enforceable in court.
The doctrine of intention to create legal relations exists to separate legally enforceable contracts from non-binding social and moral promises. Even where offer, acceptance, and consideration are present, the absence of intention to create legal relations will prevent the formation of a valid contract.

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