Intention is an essential element in creating a legally binding agreement. In contract law, intention refers to the parties’ intention to be bound by the terms of the agreement they have made. Here are some key aspects of intention:
Intention to create legal relations: The parties must have an intention to create legal relations when they enter into an agreement. This means that they intend to be legally bound by the terms of the agreement and that they understand the legal consequences of their actions.
Presumption of intention: In most commercial and business transactions, it is presumed that the parties intend to create legal relations. However, this presumption can be rebutted in certain circumstances, such as in agreements between family members or friends.
Express intention: The intention to create legal relations can be expressed explicitly in the agreement, such as by including a clause stating that the agreement is legally binding.
Implied intention: The intention to create legal relations can also be implied by the conduct of the parties, such as by the way they negotiate or perform the terms of the agreement.
Certainty of terms: The terms of the agreement must be sufficiently certain and definite to be enforceable. This means that the agreement must be clear about what each party is obligated to do or refrain from doing, and the consequences of any breach of the agreement.
Overall, intention is an essential element in creating a legally binding agreement. The parties must have an intention to create legal relations and understand the legal consequences of their actions. This intention can be expressed explicitly or implied by their conduct, and the terms of the agreement must be sufficiently certain and definite to be enforceable.