Intention to Create a Legal Relationship Flashcards
1
Q
Explain the concept of the “Intention to Create a Legal Relationship” in terms of the insurance.
A
Insurance contracts as commercial transactions are almost invariably intended by the parties to be legally binding.
2
Q
What happens when the contract is negatived?
A
The agreement between two insurers to run off outstanding liabilities under two insurance pools was a “goodwill” agreement that was not intended by the parties to be legally bound.
