ABSTRACT
An intention to be legally bound is the second essential element of contract formation. A contract does not come into existence unless the parties intend to enter into a legal relationship and be legally bound by it. Intention may be expressed by the parties or implied by their conduct. In relation to implied intention, the courts have developed the following rebuttable presumptions:
(a) parties to contracts involving domestic, social and family matters do not intend legal enforceability;
(b) parties to contracts involving commercial and business matters do intend legal enforceability.
