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) In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary.
C) In domestic agreements, there is a presumption that there is no intention to be legally bound.
D) When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test.
E) Commercial contacts are always binding, no matter what the stated intention.

Question

Quizplus · Accepted Answer

In domestic agreements, such as those between family members, there is a general legal presumption that the parties do not intend to create legal relations or be legally bound by their agreements. This presumption can be rebutted by evidence to the contrary, but it is the starting point for legal analysis in these cases.

Mrs Johnson Is Thinking of Selling Some Property to Her