Intention to Create Legal Relations

This is an element of a valid contract which distinguishes a social arrangement from an agreement intended to be legall binding. Here we discuss two rebuttable presumptions which apply to commercial transactions and to social arrangements. The courts presume that parties involved ina commercial transaction intend their agreement to be legally binding while parties in a social arrangement do not. Copyright 2013 Lola Akin Ojelabi / La Trobe University, all rights reserved. Contact for permissions.