An honour clause can be used to demonstrate that the agreement was not intended to give rise to a legally binding contract. True or False?
Understand the Problem
The question is asking whether an honour clause can be used to show that an agreement was not meant to create a legally binding contract. This involves understanding the legal concept of honour clauses and their implications in contract law.
Answer
True
The statement is true.
Answer for screen readers
The statement is true.
More Information
An honour clause is a statement in an agreement that specifies it is intended to be binding in honour only, not legally. This means it is used to prevent the agreement from becoming a legally enforceable contract.
Tips
A common mistake is assuming all contracts with honour clauses have legal binding. An honour clause explicitly states the opposite.
Sources
- Intention to create legal relations - Wikipedia - en.wikipedia.org
- Honour clause - Oxford Reference - oxfordreference.com
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