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First Principles of Business Law |
| Making a contract |
| 2. The first essential element of formation: Intention to be legally bound |
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2.4. Agreements between family members continued... |
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Read the facts and the question and then choose the best answer. A says to her father B: "I need a boat in December to transport supplies to my island hotel. I can pay $200 a week. Is your boat available?" B replies to A: "Yes, the boat is available, and $200 a week is fine." Can it be inferred that A and B have the necessary intention to be legally bound?
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(a) Yes, because even though A and B are father and daughter, this is clearly a commercial agreement. (b) No, because agreements between close family members are never legally binding. |
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