Which of the Following Is True with Regard to the Intention

question 84

Multiple Choice

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate,assume that all other elements necessary to form a contract are present.

• A)Since family matters are private matters,an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all other elements of a contract are present.
• B)The court will presume that there is always an intent to be legally bound in family situations.
• C)The court makes presumptions about the intention of parties to be bound; whether that presumption may be rebutted by evidence to the contrary makes no difference to the court.
• D)An intention to be legally bound is not a necessary element of a contract.
• E)Parties may expressly state their intention to be legally bound,in which case the court need not rely on presumptions.

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Definitions:

Stock Dividend Distributable

A declaration by a company’s board of directors to issue a dividend in the form of additional shares rather than cash.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents ownership interest.

Canada Business Corporations Act

The Canada Business Corporations Act is federal legislation that governs the incorporation and operation of corporations in Canada.