Intention to create legal relations

Question 1

What is an intention to create legal relations?

Answer 1

‘The appropriate time to judge the presence of intention, or not, is at the time an agreement is entered into and not later if and when the agreement is broken’.
- A necessary requirement in the formation of contracts
- Ultimately a test of legal enforceability in addition to consideration

Question 2

What is the approach taken to determining the existence of intention to create legal relations?

Answer 2

An objective approach - focuses on what a party’s intention reasonably appeared to be to the other party