What is meant by "intention to create legal relations"?

"Intention to create legal relations" refers to the intent of the parties involved to enter into a legally enforceable agreement. This concept is fundamental in contract law as it helps determine whether an agreement or promise is legally binding. In various legal contexts, especially in the formation of contracts, merely negotiating terms or having informal discussions does not suffice to establish an intention to create legal relations. For a contract to be enforceable, there must be a clear intention by the parties that they are entering into a binding agreement. This is particularly significant in distinguishing between social agreements and legally enforceable contracts, where the latter requires that both parties manifest an intent to be legally bound by their promises. Understanding this concept is critical for anyone studying contract law, as it helps establish the validity and enforceability of agreements in the legal setting.