What is a correct statement regarding intention to contract?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

The correct statement regarding intention to contract is that offers made in obvious anger do not meet the intent to contract test. For a contract to be enforceable, there must be a clear intention from the offeror to enter into a binding agreement. When an offer is made in a state of obvious anger, it indicates a lack of seriousness and clarity needed for a valid contract. This emotional state can lead to misunderstandings about whether the offer was genuine, thus failing the test of intention.

In contrast, an offer made in clear and deliberate circumstances would typically be considered to demonstrate the necessary intention to create a contract. It is crucial that both parties entering into a contract do so with the intention of being legally bound; without this intention, the agreement may not hold up in a court of law.

The other concepts regarding intention to contract, such as all offers being treated as though the offeror intends to contract, subjective intentions being examined by courts, or a presumption of intent in written offers, do not accurately reflect the complexities involved in determining whether a binding contract exists. Intent to contract relies on the objective manifestation of willingness to engage in a contractual relationship, rather than solely on the subjective views of the parties involved.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy