Question

Business Law

Case Scenario:

Ashley met Adam at a party and after a couple of drinks; Ashley found out that Adam is in the business of selling education products.

Compare and contrast the different liabilities for Ashley and Adam in each of the following different situations, where Ashley is buying, and Adam is selling and they are about to or have entered into a contract.

Q# a. Both parties discussed their intentions and Ashley stated what kind of education products she was interested in. However, they parted ways after that. Ashley said later that there was no contract between them but Adam stated that Ashley has already reserved the products she wanted with him.

(Please recommend any books for further more study), Thank You.

Answer 1

ans a) Intention to create a legal relationship denotes the intent of parties to enter into a legitimately binding agreement. It denotes that the sides are ready to accept the licit consequences of the agreement , this implies that they’re serious about it.

Significance of Intent to develop a Legal Relationship-

•When 2 contracting sides intend to enter into a licit relation, they’ll try to comprehend the terms of the agreement in all seriousness.

•Absence of intent to create licit relationship makes an agreement unenforceable in law.

•Minus the intention to create licit relations, the contracting sides can’t sue for enforcement of the agreement, which may cause unfair situations & business crises.

•A contract minus any intention to create licit relations becomes a mere promise.

•Absence of intent to create licit relations lessens the binding impact of a contract. It makes the agreement less powerful, & the sides would be not be likely to uphold their promise.