Question

Which of the following statements regarding the test of intention to create legal relationship is untrue?

• A. Intention is inferred when the parties to an agreement conform to the rules of law for formation of contracts
• B. Intention to create legal relationship can be expressly negated by construction of the document from which that intention is to be inferred
• C. A promisor who never intended to create legal relationship shall not be bound even if a reasonable person would consider that there was an intention to contract
• D. Even the promisor who never intended to create legal relationship shall be bound if a reasonable person would consider that there was an intention to contract

Answer 1

The Correct Option is C

If there is no intention to create legal relationships, a promisor is not bound, even if a reasonable person might interpret the agreement as one with legal intent.