Problem of Intention

Abstract

There are six essential requirements of a contract. The first is free consent of parties to a contract secondly, competence of parties of contract. Thirdly, a lawful object, fourthly, a lawful consideration, fifthly, not declared void by law and lastly, intention to create legal obligations.The intention to create legal obligations or problem of intention is however held doubtful as to whether it is a necessary ingredient or not. The obvious reason for this is that it is very rarely an issue and that intention to create legal relations goes without saying in vast majority of contracts. However, it is now established that an agreement does not constitute a binding contract unless it is one which can reasonably be regarded as having been made in contemplation of legal consequences. A mere statement of intention made in course of conversation will not constitute a binding promise, though acted upon by party to whom it was made . According legal historian Prof. AW Brian Simpson the doctrine of intention to create legal obligations might date back to 19th century in landmark Carlill vs. Carbolic Smoke Ball Company but it was not formally recognized till landmark decision of Balfour v. Balfour in 1919.The researcher's aim through course of research is to find nature of problem of intention in general while drawing line of distinction between nature of problem in terms of commercial and non commercial (social and domestic) agreements.