ABSTRACT
When we look to see if a valid contract has been formed not only do we have to consider the formation of the contract – that is the offer and acceptance – and the presence of consideration, but we also have to consider if the parties to the agreement really intended to create legal relations (intended to be legally bound) to each other by way of contract. This is normally straightforward in the case of commercial contracts, but agreements between friends and relatives can lead to problems. For instance, if one friend agrees to drive her friend to the airport provided her friend pays for the petrol and that friend agrees to so do, is there a contract between them? There appears to be an agreement which is supported by consideration, but is that enough to form a valid contract? Did the friends in those circumstances really intend to form a legally binding agreement?
