The intention to be bound by the agreement
A third requirement is that the parties do really intend to be bound by
whatever they agree. In a shopping context this is likely to go without
saying, as a seller is unlikely to intend to give away goods without really
expecting payment! However, if I offer to pay for my friend’s drink if he
buys my sandwich, I do not seriously expect to sue him if he only buys his
own sandwich. To distinguish between serious contracts and social
agreements the law requires an element of legal intention in forming a
contract.
Capacity
A further factor to consider in the legality of a contract is whether the
parties are of the standing required by the law to make a binding
agreement. If a child in a playground agrees to sell one of his toys, this
would not normally be binding. The law requires a legal capacity to
contract, and generally adults over the age of 18 are said to have this. A
further formation requirement examined in this part of the book, then, is
the capacity to contract.
If all four of these requirements are present, then there will normally be a
binding contract.
6 Contract law