As far as commercial transactions are concerned, there is a strong presumption of a valid contract: these agreements, in which the parties have conveyed themselves as foreigners, are considered binding. However, "honor clauses" in gentlemen`s agreements are recognized as a regulation of the intention to create legal relationships, as in the pools of Jones v Vernon (where the clause "This agreement is only honorific" was effective). Care must be taken not to formulate a clause in such a way as to try to exclude the jurisdiction of a court, because the clause is void, as in Baker v Jones.  If a contract contains both an "honor clause" and a clause that attempts to exclude the jurisdiction of a court (as in Rose & Frank v Crompton), the court may apply the blue pencil rule that disfigures the offending party. The court then recognizes the rest, provided that it is still useful and that it remains in accordance with the agreement of the parties. The hurtful clause was as follows: in Simpkins vs. Pays, an informal agreement between a grandmother, granddaughter and tenant on the sharing of the gains from competition was binding. Seller J, using the objective test, found that the facts showed "reciprocity" between the parties and added that family agreements do not create legal relationships unless there is clear evidence to the contrary. The courts will reject agreements that, for political reasons, should not be legally enforceable.
 A contract is a legally binding agreement. Once an offer has been accepted, there is an agreement, but not necessarily a contract. The element that turns any agreement into a real treaty is "the intention to create legal relations". It is necessary to demonstrate that the parties envisaged that the agreement would be subject to contract law. If evidence of intent is found, the agreement creates legal obligations that allow for the prosecution of any party who initiates an offence. "Any collective agreement concluded after the beginning of this section is ultimately considered a legally enforceable contract by the parties, unless it is an agreement: although many sources consider `social and domestic agreements` as a single class, it is preferable to consider `family agreements` as a separate class from `social agreements`. since the latter do not assert a presumption and only objective examination applies. In civil systems, the notion of intent to establish legal relations[d] is closely related to the "theory of will" of treaties, as represented by the German jurist Friedrich Carl von Savigny in his current nineteenth-century Roman law system.  In the nineteenth century, an important concept was that contracts were based on a meeting of minds between two or more parties and that their mutual consent to a company or their intention to enter into a contract was of the utmost importance. While it is generally true that courts want to maintain the intentions of the parties, courts moved to a more objective interpretative position during the second half of the nineteenth century, focusing on how the parties had expressed their external agreement. .