Factors That May Impact on the Intention of the Parties to Enter into the Legal Agreement

Entering into a legal agreement is a significant decision that requires careful consideration from all parties involved. However, several factors may impact the intention of the parties to enter into a legal agreement. Some of these factors may include:

1. Misunderstandings and Miscommunications

One of the primary reasons why parties may not enter into a legal agreement is because of a misunderstanding or miscommunication. Sometimes, the language used in the agreement may be too complex or confusing, leading to misunderstandings between the parties. Additionally, one party may be more familiar with legal terms and jargon than the other, which may create confusion.

2. Financial Considerations

When entering into a legal agreement, parties must consider the financial ramifications of the agreement. This includes understanding the costs associated with entering into the agreement, the potential risks, and the financial benefits that will be gained from the agreement.

3. Personal Bias

Personal bias may also play a role in whether parties enter into a legal agreement. For example, if one party has had a negative experience with similar agreements in the past, they may be hesitant to enter into a new agreement.

4. Legal Requirements

If the legal agreement has certain legal requirements that the parties must meet, it may impact their intention to proceed with the agreement. For example, if the agreement requires the parties to obtain specific licenses or permits, they may be hesitant to move forward if they are unable to obtain these requirements.

5. Trust Issues

Trust can also be a factor that impacts the intention of the parties to enter into an agreement. If one party has been involved in previous disputes or has a reputation for not fulfilling obligations, it may create a lack of trust and lead to hesitation in entering into the agreement.


Several factors may impact the intention of parties to enter into a legal agreement. Careful consideration should be given to these factors to ensure that all parties involved are confident in their decision to enter into the agreement. By addressing these factors, parties can improve their chances of reaching an agreement that is fair, equitable and meets the needs of all parties.

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