Intention is a crucial element in commercial agreements and is often considered the cornerstone of contract law. It is important for parties entering into a commercial agreement to be clear about their intentions and understand the legal implications of their actions.

At its core, intention refers to the purpose or objective that parties have when entering into a contract. A common question that arises in contract law is whether the parties intended to create legal relations. This can be particularly important in situations where parties have a pre-existing relationship, such as between employers and employees or family members.

The intention of the parties can be inferred from the language of the contract, the conduct of the parties, and the circumstances surrounding the agreement. For example, if a contract includes language that suggests that the parties intend to create legal relations and it is clear that the agreement has commercial implications, it is likely that the parties intended to create a legally binding contract.

In some cases, parties may have different intentions when entering into a contract. For example, one party may intend for the agreement to be a binding contract, while the other party may view the agreement as simply a statement of intent or a non-binding agreement. In situations like this, it is important to have clear and precise language in the contract to avoid misunderstandings and ensure that the parties are on the same page.

Once it has been established that the parties intended to create legal relations, the courts will look to the terms of the contract to determine the intention of the parties with respect to the specific terms of the agreement. In commercial agreements, it is common for the parties to negotiate and draft complex terms and conditions, and it is important to ensure that these terms accurately reflect the intentions of the parties.

In the event that a dispute arises between the parties with respect to the intention of the contract, the courts will look to a number of factors to determine the intention of the parties. These factors may include the language of the contract, the conduct of the parties, and any other relevant circumstances.

In summary, intention is a critical element in commercial agreements and can have significant legal implications. It is important for parties to be clear about their intentions and ensure that the terms of the contract accurately reflect these intentions. By doing so, parties can avoid misunderstandings and disputes, and ensure that their agreements are legally binding and enforceable.