A Necessary Element of a Contract Is That the Parties

question 104

Multiple Choice

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?

• A)Family members can never have the intent to be legally bound in their agreements because family matters are private matters.
• B)The court always presumes an intention to be legally bound,so this is never an issue in a contract case.
• C)The court can presume the intention to be legally bound,but a party to the contract can bring forward contrary evidence to rebut that presumption.
• D)If the parties fail to state expressly in their contract their intention to be legally bound,there is no contract.
• E)In contract cases,the court hears evidence as to what the parties actually had in their minds at the time of contract.

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Definitions:

Private Producer

An individual or company that produces goods or services in a market economy without direct government intervention.

Market Economy

An economic system where prices and production are determined by unrestricted competition between privately owned businesses.

Market Economies

Economic systems in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Government Involvement

The participation or intervention of governmental bodies in certain areas of the economy, typically to correct market failures or to achieve certain social goals.