Mrs Johnson Is Thinking of Selling Some Property to Her

question 56

Multiple Choice

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.

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Primary School

An educational institution for children, typically aged five to eleven, providing the initial stage of compulsory education in many countries.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Fallacy of Composition

The logical error of assuming what is true of a part is also true for the whole.