Presumption of Intention not to Create Legal relations in Domestic and Social Agreements


John sought your advise regarding the elements of a contract, and wanted to know specifically what does it mean for parties to have intended to create legal relations? In particular, John wants to know does it matter in what setting an agreement would be found to have such an intention, and why?

Suppose that John had signed a written agreement with his sister, promising to lend her $5000.00, and that the amount is due four months later. Can he enforce this contract with his sister on the basis that he intended to form a legal relation with her? Why?

Points to consider:

Need to discuss or explain what is an intention to create legal relations. 

Discussion: intention to create legal relations in business and commercial agreements.

Discussion: presumption of intention not to create legal relations in domestic and social agreements. 

Discussion: John and his sister had formed an agreement in a domestic and social setting, is it likely that they have intended    to create legal relations?

Provide appropriate cases example for each point.

Summary: This question belongs to business law and discusses about elements of a contract for a written agreement of a person with his sister.

Total word count: 978


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