Intention Of Parties In Contract Definition

The intention of the parties to a contract is defined as their purpose or objectives in entering into the agreement. This can be either expressed or implied from the language of the contract or the circumstances surrounding its formation. The courts will typically look to the objective evidence of the parties’ intent, rather than any subjective statements made by them, in order to determine what their intentions were.

The concept of intention is important in contract law because it forms the basis for determining whether or not there is a binding agreement between the parties. If it can be shown that the parties did not intend to be bound by their agreement, then there is no contract. This may occur, for example, where the parties have only reached a preliminary agreement and have not yet formalized it in writing. In such cases, there may be an enforceable contract if one of the parties has already acted on the agreement (such as by beginning performance), but this will depend on the specific facts and circumstances.