intention to create legal relations

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One of the key constituents of a contract. An agreement is only enforceable if, inter alia, there is an intention that it should be legally binding. As a general rule, the law presumes that familial and social agreements are not intended to be binding (Balfour v Balfour [1919] 2 KB 571). The reverse presumption, i.e. that there is an intention to be bound, applies in agreements of a commercial nature (Edwards v Skyway Ltd [1964] 1 All ER 4). Both of the above presumptions can be rebutted by bringing forth evidence to the contrary (Merritt v Merritt [1970] 1 WLR 1211).

Subjects: Law.

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