A necessary element of a contract is that the parties must have the intention to be legally bound. Which of the following is true with regard to this element of a contract?

A) In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract.
B) If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract.
C) The court always presumes an intention to be legally bound, so this is never an issue in a contract case.
D) The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption.
E) Family members can never have the intent to be legally bound in their agreements because family matters are private matters.

Question

Mahsa Badri · Accepted Answer

Final Answer : D, Explanation :  The court generally presumes that parties entering into a contract have the intention to be legally bound, especially in commercial contexts. However, this presumption can be rebutted if evidence is presented that shows the parties did not intend to create legal relations.

Definitions

Learning Objectives

Learning Objectives

Related questions