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Atharv Sankliya   25 June 2022

Intention to create legal relationship contract act

intention to create legal relationship and essential element of offer section number ??


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 3 Replies

Anila Sabu   27 June 2022

Dear Qurist,

Intention to create legal relations mainly talks about the intention behind entering into a legally binding agreement or contract.

Intention to create legal relations is one of the most important elements in the formation of a contract.

This is because, intention to create legal relations consists of readiness of a party to accept the legal sequences of having entered into an agreement.

 

An Offer is talked about under Section 2(A) of the Indian Contracts Act, 1872.

The 3 essential elements of a valid offer are as follows:

(1) Communication

While making an offer it is essential for the offerer to clearly communicate and express his/her willingness and readiness to enter into a contract or abstain from doing so.

Furthermore, one must remember that the mere desire or willingness to do or not to do something is not enough and will not constitute for an offer.

(2) Terms of the offer must be clear.

Knowledge of the Intention of the parties is very essential.

As without this, it would result in the courts not being able to decide what the parties want to do.

Therefore, the terms of the offer must be clear, conscience and definite and not vague.

(3) Must create a legal relationship

Lastly in order for it to constitute as a valid offer there must be a clear intention to create a legal relationship between the parties. If not, then this would only constitute as an invitation.

In the case of non-performance of the contract an offer must lead to a contract which creates legal obligations and legal consequences.

Atharv Sankliya   30 June 2022

can you please tell me the section in which intention to create legal relation  is defined ??

Anila Sabu   30 June 2022

The Intention to create legal relationship, along with other essentials to make a valid contract, is defined under section 2 of The Indian Contract Act of 1872


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