Recognizing the will of the individual as the foundation of private law means that sometimes one has to become dialectical. There must be ways to limit an individual`s will, especially to the extent necessary to achieve what German scholars have called “a practical agreement with the interests of other human beings” or to get along with one another. Either party may leave at any time during the negotiation process based on new information discovered or a lack of agreement on a particular point. In the event of a dispute between the contracting parties, the courts apply certain rules for the interpretation of the language of the contract. The common objective of these rules is to determine the intention of the parties. Courts generally base their judgment on the legitimate intention of the parties entering into a contract. Ultimately, the information contained in the LETTER of Intent is part of the final purchase agreement that legally establishes the transaction; It describes what you can and cannot talk about outside of this negotiation, and it provides a roadmap that outlines how things will continue. The intention to create legal relationships, otherwise an “intention to be legally bound”, is a doctrine used in contract law, particularly in English contract law and related common law jurisdictions. [a] Although these distinctions have a philosophical meaning, in practice it is not easy to separate an individual`s explanatory consciousness from his or her willingness to explain and enter into a transaction. There is no qualitative difference if someone does not have the will to make transactions at all or if they simply want another transaction.
The awareness of the declaration, the will to declare and the will to participate in a transaction thus form a uniform whole. The exception to the general position is when it is clear that a legally binding agreement is foreseen. In these cases, the presumption can be rebutted. For example, in Merritt v Merritt (1970), the couple was separated when they entered into an agreement under which they promised to perform for certain expenses, but did not. He claimed that the agreement had been reached within his family and that he did not have the legal intention necessary for the agreement to be legally binding. However, the court concluded that the agreement was enforceable because the agreement was made while they were not living in a “friendship”. Business etiquette and protocol can be a deciding factor. For example, most mergers and acquisitions seriously begin with a term sheet that acts as a letter of intent. The term sheet shows intentions, purchase price, and payment terms, but term sheets are almost always non-binding. The courts are likely to examine this precedent.