INTRODUCTION Intention to enter into legal relation is essential in the formation of a valid contract. The general rule is that a contract, which is duly formed with valuable consideration, will not be enforced unless there is an intention by the parties to be legally bound. The intention to create legal relation is a necessary independent element in the formation of contract and it is essential in all contracts. It means the readiness of each to accept the legal consequences if he does not perform his own part of the contract. An offer to be made binding by acceptance, must be one which can reasonably be regarded as having been made in contemplation of legal consequences. Intention To Create Legal Relations When there is no intention to create legal relations there would be no binding contract at law. This situation is common in the areas of simple contracts that are oral or even when they are in writing. In order to ascertain as to whether there is an intention to create legal relation or not, the Courts have evolved certain guidelines. For instance, where an agreement is of a domestic nature, the courts are prone to assuming, on the face value of it, that there is no intention to create legal relations. On the other hand, where the agreement is of a commercial nature, there is a presumption by the court that the parties intent to create legal relations and the burden of rebutting that presumption is on the parties. Statutory provisions may also act as bar o the enforceability of an agreement. For instance, an engagement to marry may not be an intention to create legal relations. In Balfour v. Balfour (1919) 2 K.B. 571, a civil servant who was on overseas posting in Ceylon agreed to be sending down subsistence allowance £30 to his wife every month. Later on,