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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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2.5. Other cases requiring proof of intention |
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Read the facts and the question and then choose the best answer. A says to B: "Our club needs volunteers to take disabled people shopping. If you help, we will pay the cost of the petrol you use." B replies to A: "OK, I'll help once a week." On these facts, can it be inferred that A and B have an intention to be legally bound by this arrangement?
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(a) Yes. A and B are not related in any way, so their agreements must be intended to be legally binding. (b) No. Even though A and B are not related, the circumstances of this agreement do not justify inferring that they intended to be legally bound.
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