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14 W. J. Legal Stud. 1 (2023)

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  CONTRACT LAW'S RED HERRING: EXPOSING INTENTION AS A GUISE FOR

                                     CONSIDERATION

                                     LAURA   GOLDFARB*



                                     INTRODUCTION

       Before  the important case of Balfour v Balfour, a contract was thought to consist of three

elements; offer, acceptance, and consideration. Since that case, however, courts and academics

have debated  whether intention to create legal relations should constitute a fourth, independent

requirement  for contract formation. Some scholars view intention to create legal relations as the

foundation  of any  legitimately enforceable  contract,2 while others  see the requirement  as

superfluous  and distracting.3 The same  divide can  be seen  across jurisdictions. The United

Kingdom,   staying true to Atkin LJ's decision in Balfour, (at least theoretically) requires intention

to create legal relations,4 whereas the United States (at least theoretically) does not.5 For our part,

in a recent decision titled Ethiopian Orthodox Tewahedo Church of Canada  St. Mary Cathedral v

Aga, the Supreme  Court of Canada  unanimously  settled the debate in the affirmative; intention to

create legal relations is ostensibly required to form a contract in Canada.6






Copyright © 2023 by Laura Goldfarb.
* Laura Goldfarb is a JD Candidate at the University of Toronto (Graduating 2023) and received her Honours
Bachelor of Arts from Wilfrid Laurier University (2020). She wishes to thank her research supervisor Professor
Peter Benson for his generous support and guidance. The author also thanks the Western Journal of Legal Studies'
editorial team for their thoughtful feedback and edits.
1 [1919] 2 KB 571 [Balfour].
2 See e.g. Randy E Barnett, A Consent Theory of Contract (1986) 86:2 Colum L Rev 269.
s See e.g. Peter Benson, Justice in Transactions: A Theory of Contract Law (Cambridge: Harvard University Press,
2019).
a See Gregory Klass, Intent to Contract (2009) 95:6 Va L Rev 1437 at 1443-1453.
s Ibid.
6 Ethiopian Orthodox Tewahedo Church of Canada St Mary Cathedral v Aga, 2021 SCC 22 [Ethiopian Orthodox].


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