Chapter 2 Intention

4 Intention to create legal obligations 4.1 Introduction There can be no contract if the parties did not intend to create a legally binding agreement. To help the court decide whether such an intention exists there are two rebuttable presumptions. 4.2 Social and domestic Presumption: No intention to create legal obligations. Factors:  Can be rebutted if husband and wife are separated when the agreement was made. INTERACTIVE QUESTION 1: REQUEST FOR INFORMATION ABOUT AN OFFER INTERACTIVE QUESTION 2: FORMATION OF A CONTRACT La w 2 : Contract formation 15 4.3 Commercial Presumption: Intention to create a legally binding contract. Factors:  Difficult to rebut the presumption.  Use of standard terms such as “ex gratia” is insufficient to rebut the presumption.