Legally Binding Contracts Essay - 1501 Words

Explain why it is important to have an intention to create legal relations when making a contract and why is consideration of the parties to the agreement necessary-: Intention to create legal relations can be defined as follows. ‘An agreement will only become a legally binding contract if the parties intend this to be so. This will be strongly presumed in the case of business agreements but presumed otherwise if the agreement is of a friendly, social or domestic nature.’ Source (HNC unit 5 Business law course book) In determining whether the parties intend their agreements to be legally binding the court is guided by two presumptions. Parties to a domestic or social agreement do not intend to be legally bond. Parties†¦show more content†¦The something of value may be either something that the person actually hands over (that they would not otherwise be obligated to hand over) or some right that they give up (that they would otherwise have been entitled to exercise). For example, if you agree to buy a car for cash, you agree to deliver cash to the seller, and the seller agrees to deliver the car to you. In tha t situation, there is legal consideration, or sufficient value, for the agreement to be enforceable. Another example is a mutual release of claims. Suppose you accidentally hit a parked car, and you agree to pay the owner of the car  £500 in cash to settle. In that case, you agree to deliver cash to the owner of the car, and the owner agrees that he or she will not file a lawsuit against you. (In such a situation, always get a written release of liability, or release, from the owner of the car to prove that you have settled up.) The consideration from your side is the cash, and the consideration from the owners side is that he or she gave up the right to sue you for the damages. Although the owner didnt give up anything physical, there is consideration to support the agreement because the owner gave up a legal right. Source: (http://onlinelegalforms.com/legalforms/freedraftingtips.html#consideration) Dunlop v Selfridges (1915) Hol. Defined consideration as ‘An act or for bearance of one party or, the promise thereof, is the priceShow MoreRelatedEnter Into A Legally Binding Consumer Contract2200 Words   |  9 Pagesthe process required to enter into a legally binding consumer contract. The essay will then address express and implied terms within consumer contracts. Finally the contracts entered into by the client within the case study will be examined. Evaluating any breaches made towards the contracts and identifying any remedies available to the client for the breaches identified. Essential criteria must be present in order for a consumer contract to be legally binding by law, a process of offer, acceptanceRead MoreContract and Legally Binding Agreement Essay example877 Words   |  4 Pages Hartly The Auto Dealer What do you think about this situation? 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