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For there to be a legally enforceable contract, the parties must have intended to enter into a legally binding agreement.

The intention to enter into a legally binding agreement is seldom stated, but is usually inferred from the circumstances surrounding the agreement. For example, when you buy something in a shop, you and the seller both intend that once the goods are purchased, they will be legally yours to do what you like with, and the seller will be legally entitled to keep your money. You do not need to discuss this, because it is understood.

Agreements between friends or members of a family are not usually intended to be legally binding unless the contract is one of a commercial type, for example selling a car or providing a loan to a friend or relation. One common indication that the parties intend an agreement to be legally binding is if one pays money to the other.

Making a Contract  :  Last Revised: Tue Oct 9th 2018
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