‘in Family or Social Matters There Can Be Legally Binding Contract’

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1.0 INTRODUCTION
‘Legally binding contract’ is a common legal phrase which indicates that an agreement has been consciously made, and certain actions are now either required or prohibited. The meaning of the phrase therefore is that the contract is able to be enforced by the law. For example, a lease for an apartment is legally binding, because by signing the document, the lessor and the lessee are agreeing to a number of conditions. The lessor typically agrees to provide the apartment in a certain condition for a certain length of time, and the lessee typically agrees to pay an agreed upon rent and refrain from certain destructive behaviours. Another requirement for an agreement or contract to be considered legally binding is consideration, which means that both parties must consciously understand what they are agreeing to. If a person is forced, tricked, or coerced into entering into an agreement, it typically is not considered legally binding. 2.0 INTENTION TO CREATE LEGAL RELATIONS

There might be an agreement between people, simply does not mean that they have a contract existing between them. The parties to the agreement must be determined to enter into a legally binding agreement. This will rarely be stated explicitly but will usually be able to be inferred from the circumstances in which the agreement was made. For example, offering a friend a ride in your car is not usually intended to create a legally binding relation. You may, however, have agreed with your friend to share the costs of travelling to work on a regular basis and agree that each Friday your friend will pay you $20 for the running costs of the car. Here, the law is more likely to identify that they entered into a contract. Commercially based agreements will be seen as including a rebuttable  intention to create a legally binding agreement. Yet, the law presumes that in a family or society, agreements are not intended to create legal relations. For example, an understanding...
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