6) In its most basic form, the intention 

to create legal relations means that both parties must

intend to establish legal agreement with enforceable rights and responsibilities. As simple as
this may appear, determining whether the parties to a discussion intended to create legal
relations is very fact dependent. It is fair to presume that company representatives meeting in
a formal commercial setting to discuss a contract do so with the intention of forming legal
ties. The law distinguishes between social and domestic agreements and commercial
agreements in order to identify which agreements are legally binding and have the goal to
form legal connections.

a) Commercial or Business Relations

There is a presumption or purpose to be legally binding in terms of general norms of
commercial or business dealings. Otherwise, the presumption is rebuttable in terms of
exception.

Case example: Kleinwort Benson Ltd V Malaysia Mining Corporation Bhd in year 1989
The letters of comfort are displayed in the case. The plaintiff (bank) agreed to lend money to
MMC Metals, a subsidiary of MMC. MMC was asked to guarantee a loan by the bank. MMC
stated that it was not their policy to guarantee loans to subsidies, but they did give a letter of
comfort stating, "It is our policy to ensure that MMC (Metals) is in a position to satisfy its
liabilities under the arrangements at all times." The bank agreed, but at a higher interest rate,
and the market crashed, forcing MMC into liquidation. The plaintiffs attempted to get
compensation from MMC. The court ruled in favour of the plaintiff in the first instance,
relying mainly on the Skyways (1964) decision, which was overturned on appeal, and the
judge stated that the Skyways case is not about promise supported by contemplation, and
hence was not applicable here. As a result, it was determined that the no intention to make a
legally enforceable agreement statement was not intended to operate as a guarantee, as it
stated the existing position rather than future intentions.
b) Social Friend’s Relations

There is no presumption that general principles of social friend's relations are legally binding.
Consequently, the presumption is rebuttable in terms of exception.

Case example: Simpkins V Pays in year 1955.

The case exemplifies mutuality. The defendant, her granddaughter, and the plaintiff (paying
lodger) all competed in newspaper competitions on a frequent basis in this instance. All of the
contributions were made in the defendant's name. There is no written agreement that specifies
the payment of mail and other costs. When plaintiff's submission into the competition was
successful, defendant refused to share. The plaintiff filed a lawsuit to recover his part. The
court concluded that a legally binding relationship was sufficient mutuality in the parties'
agreements.

c) Family or Domestic Relations

There is no presumption that general rules of family or domestic relations are legally binding.
However, the presumption is rebuttable in terms of exceptions.

Case example: Balfour v Balfour in year 1919

From Sri Lanka, the husband brought his wife to England. The husband had to return, but the
wife was unable to go due to medical issues. Until he returned, he agrees to send her £30 a
month. The wife sued her husband when he failed to pay. Wife's action failed because she did
not offer any consideration and had no intention of entering into a legally binding agreement.
The court stated in husband-and-wife cases, burden of proof is on plaintiff to prove intention
to create legally binding agreement.
7) A unilateral contract is one in which the offeror commits to pay following the occurrence
of a specific event. Unilateral contracts were mostly commonly utilised when an offeror has
an open request for a specific act for which they are willing to pay. One of the most common
examples is an insurance contract. In an insurance contract, the insurance company agrees to
indemnify or pay the insured person a certain amount of money if a specified event occurs.
The insurer is not bound to make a payment to the insured if the event does not occur because
it is a unilateral contract.

Whereas a bilateral contract is a two-party agreement whereby each party undertakes to carry
out their half of the arrangement. Bilateral contracts typically contain equal obligations or
consideration from both the offeror and the offeree, though this is not always the case. A
bilateral contract might be anything from a sales deal to a lease agreement. In exchange for
the title to the car, a car buyer may agree to pay the seller a set sum of money. In exchange
for the agreed-upon sale price, the seller commits to give the car title. A breach of contract
occurs when one of the parties fails to fulfil one of their obligations.
4)An invitation to treat is an activity that invites other groups to make a contract offer. These
behaviours may appear to be offers in and of themselves and distinguishing the two can be
difficult. It is vital to understand the difference since accepting an offer constitutes a legally
enforceable contract, whereas "accepting" an invitation to treat is basically making offers. It's
critical to understand the difference between an offer and  invitation to  treat. If we accept an
offer, we enter into a legally binding contract. If we accept an invitation to be treated, we
have only accepted an offer. Until we make a clear and direct approach to another party to
contract, an invitation to treat is not an offer.

Invitation to treat can be anything that is displayed to a broad group of individuals, as long as
there are no set criteria for who can accept. Invitations to treat can be found in a variety of
places, including shop displays, commercials, and catalogues. Because they lack the critical
information that would make them an offer, advertisements are usually an invitation to treat.
When a customer approaches a seller with a purchase offer, an offer is made. Adverts being
defined as invitations to treat also permits merchants to refuse to sell things at incorrectly
marked pricing.

Auctions can be used as invitations to treat. Each bid is a proposal to the buyer. On behalf of
the seller, the auctioneer may accept or reject the offer. Tender process also a good example
of invitations to treat. The party tendering services is not obligated to enter into a contract
with the first party to submit a tender proposal.
2) Partnerships and company are varying in many aspect. First, the structures of companies
and partnerships differ, with companies being much more sophisticated and involving
numerous people in decision-making. A company is a separate legal entity owned by
shareholders that allows them to decide how the firm is operated and who controls it. A
partnership is a firm in which two or more people hold a portion of the company. All
management responsibilities, expenses, liabilities, and earnings are shared by two or more
owners in general partnerships. General partners share ownership duties in limited
partnerships, whereas limited partners merely function as investors.

Next, partnership and company differ in term of taxation. Partnerships are exempt from
paying business taxes, and gains and losses are instead "passed through" to the individual
general partners. Partnerships must pay income taxes with the Internal Revenue Service to
record deficits and profits, and general partners would have to include their percentage of
profits and losses in the filing. Shareholders must pay taxes on their salaries, bonuses, and
dividends, and companies must pay state and national taxes. Individual income tax rates are
frequently lower than corporate tax rates.

In a partnership, the general partners are responsible for all debts and legal obligations of the
company. The assets of general partners may be used to settle company debts. Partnership
agreements frequently specify what percentage of the company every general partner is liable
for, and the percentage can differ from one partner to the next. Individuals, on the other hand,
are not held liable for a company's debts or legal duties. Because the company is treated as a
separate legal entity, it is responsible for all obligations and legal bills, and the stockholders
were never at threat of losing personal property.

After that, there is clear differences between the management of partnerships and companies.
Companies have more complex management structures than partnerships. All general
partners in a partnership determine how well the business is run. General partners frequently
take on management tasks or participate in the recruitment and supervision of managers.
Shareholders govern companies, and they gather on a regular basis to decide on management
and policy. Shareholders are typically not engaged in the day-to-day management of the
organization, but rather supervise the executives who operate it.
Next, is in term of start up costs. Companies are more costly and difficult to establish than
partnerships. Creating a business comes with a slew of administrative fees as well as a slew
of tax and legal requirements. Articles of incorporation must be filed, as well as state and
local licences and permits. Lawyers are frequently hired by businesses to assist them with the
process. Partnerships are less expensive and easier to establish. The partners should register
the company with the state and secure any necessary municipal or state business licences or
permits.
1)A contract is a legally binding agreement between two parties. It is not always
straightforward to determine if a contract's fundamental criteria, such as offer and acceptance,
the necessity or otherwise of consideration, the parties' capacity, the actuality of their assent,
and so on, are met. Offer, acceptance, consideration, legality, and mutuality are essential
elements of a legally binding contract in order for the agreement to be enforceable.

One of the parties must make an offer to the other in order for a contract to be formed. An
offeror is a person who makes a proposal. An offeree is the person to whom an offer is made.
An offer made if an offeror offers a set of conditions to an offeree, with the purpose that if the
proposed conditions are accepted, the two parties will enter into a legally binding contract.
The offeree agrees to become legally bound by the terms specified by accepting them. As a
result, this acceptance would constitute a contract. Because a contract is a legally binding
agreement, neither an offer nor an acceptance should be made unless both parties are willing
to face the legal ramifications.

The offeree who receives the offer from the issuer indicates that he or she has indeed
accepted the offer. Acceptance is merely a sign that the offer has been accepted by the person
who made it. Acceptance must be unequivocal, unconditional, and without conditions. The
objective spectator has to be able to tell whether or not the offer was accepted. Acceptance
must be communicated prior to the offer's expiration date. Most offers have a time limit on
how long they can be accepted. It is not possible to accept an offer that has expired unless the
person who made it has renewed it.

Consideration is defined as a guarantee of something of value in return for a certain action or

inaction. A major outlay of money or effort, a promise to deliver a service, an agreement not
to do something, or reliance on the promise are all examples of this. The value that entices
the parties to enter into a contract is known as consideration. A contract is distinguished from
a gift by the presence of consideration. A gift is an unrequited transfer of ownership from one
person to another without the guarantee of something of value in return. Because there is no
consideration for the commitment, failure to follow through on a promise to make a gift is not
enforceable as a breach of contract.
Legality is the fourth  requirement of a valid contract. An illegal deal will not be enforced by
the courts, as a general rule. Contracts are only enforceable if they are formed with the goal
of being legal and the parties intend to legally commit themselves to their agreement. A
family agreement to go out to dinner with one member covering the bill is legal, but it is
unlikely to be established with the intention of being legally binding. A contract to buy illegal
narcotics from a drug dealer, for example, is made with all parties aware that what they are
doing is illegal, and hence is not enforceable in court.

Mutuality, also called as meeting of the minds, states that both parties must be obligated to
carry out the contract's duties. If this is not the case, the law will determine that neither side is
obligated to the contract. Unless both sides agree to be bound by the contract, neither side is
bound. A contract is void unless both parties agree to it. When one side does not have the
choice to cancel the contract, mutuality is extremely vital. Some of these scenarios allow one
side to complete their responsibilities at their leisure while still requiring the other party to
perform. Because these contracts lack mutuality of obligation, courts are likely to declare
them void.