Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?
A) Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements.
B) When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test.
C) In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary.
D) In domestic agreements, there is a presumption that there is no intention to be legally bound.
E) Commercial contacts are always binding, no matter what the stated intention.

Question

Quizplus · Accepted Answer

The correct answer is D because in domestic agreements, there is a longstanding legal presumption that there is no intention to be legally bound. This means that unless there is evidence to the contrary, the courts will assume that Mrs. Johnson and her son did not intend to be legally bound by their agreement to sell the property. This is because domestic relationships are often based on love and affection rather than on the cold calculations of business, and the law recognizes that it is not appropriate to apply the same legal standards to domestic agreements as to commercial ones.

Mrs Johnson Is Thinking of Selling Some Property to Her