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(c) That's wrong. 

You were asked to select the statement that best describes when the parties to an agreement intended it to be legally binding or not.

It is correct to say that, when deciding whether the parties to an agreement intended it to be legally binding or not, the courts will infer what the parties intended by taking account of the objectively known facts at the time the agreement was entered into.

Give yourself no marks for this answer.

 

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