A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?
A) In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract.
B) If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract.
C) The court always just presumes an intention to be legally bound, so this is never an issue in a contract case.
D) The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption.
E) Family members can never have the intent to be legally bound in their agreements because family matters are private matters.

Question

Quizplus · Accepted Answer

Although the court can presume the intention to be legally bound in most cases, a party to the contract can bring forward evidence to show that they did not have the intention to be legally bound. This is particularly relevant in cases involving agreements between family members, where there may be a presumption against the intention to be legally bound. However, it is still possible for family members to have a legally binding agreement if there is evidence that they intended to be legally bound.

A Necessary Element of a Contract Is That the Parties