Intention to Create Legal Relations and the Reform of Contract law: A Conservative Approach in the Modern Global Era Social Development, Customary Law and Administration of Justice in Nigeria

Abstract

Intention to create legal relations is one of the essential elements of a valid contract. It is a critical factor in validating a contract alongside offer, acceptance and consideration. Even when an agreement fulfills these three basic elements, failure to prove intent to be legally bound nullifies the contract and justifies the refusal of the justice system to enforce it. It has been argued on one hand that as far as an agreement has met the basic elements of offer, acceptance and consideration necessitating a separate test of intention to create legal relations is inordinate. On the other hand, it has also been submitted that the doctrine should be retained. Through an analytical approach, this paper examines both sides of the contention and resolves in favour of retaining the doctrine. This will enhance commerce; guaranty contracting parties’ uninhibited right and freedom to enter into a contract and ensure certainty and stability in the realm of contract in a manner consistent with the requirements of modern global era.