A Necessary Element of a Contract Is That the Parties

question 42

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

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