Question

Which of the following is true about whether or not an enforceable contract exists?

A. If a party acted like he intended to make a contract but he actually did not intend to make a contract, then no enforceable contract exists.

B. No contract is enforceable unless it is in writing.

C. The objective meaning of the parties' words and conduct will determine whether the contract exists, not their subjective intent.

D. An enforceable contract only requires an offer and an acceptance.

Answer 1

Answer : D

here are a few concept of intention to create legal relations. Intention to create legal relations also means an intention to be serious about agreement significance:

a) The contracting parties mind will be obvious to enter a serious contract

When two parties decided to enter in the environment of a contract, their mind will understand the contents of the contracts. This is due to their ‘intention' to be consenting mind which both of the parties have to agree. If there is no agreement by both of the parties, it may make the contact being a void agreement. Thus, both of the contracting parties will enable to be serious into the contract.

b) If there is no intention to create legal relations the contract would not be enforceable, legal and binding

Intention to create a legal relation is one of the essential elements of contract. So, if there is no intention to create a legal relation, the contract can be assumed as a not legal. Due to that, the contract may not being enforceable because there is no intention to create legal relations at the beginning which not making contracting parties to be legally binding.

c) Without intention to create legal relations, the parties cannot sue each other

With no intention to create legal relations, it may cause the contracting parties are not being legally binding and this circumstances may cause the contract is enforceable. Therefore, when the contract is enforceable, the contracting parties cannot sue each other and this will spoil their business crisis. This will make the contracting parties hard to enquire their justice.

d) Without intention to create legal relations the contract may become a mere promise

In addition, with no intention to create legal relations, it will make any contract to become a mere promise. Mere promises simply like a simple promise arise when there is no intention to create legal relations. Based on the case of studies, the situation of mere promises can be seen when Nathan, the Comfortable Furniture Sdn Bhd salesman have no intention to create legal relations. He did not accept cash deposit from Mr John to obey the company policy. When the mere promise occurs, the salesman still can sell the dining set to other people because they is no legal contract between Nathan and Mr john.

e) Without intention to create legal relations the contract may lack the binding effect

Besides that, when there is no intention to create legal relations, it will make the contract or agreement become less powerful due to whether one or both of the parties does not have a consent mind. So, if the contract lack of binding effect, it will cause the difficulty to the party involved in future.