Which term refers to the requirement that a contract must be entered into with the intention to create legal relations?

The term that refers to the requirement that a contract must be entered into with the intention to create legal relations is "contractual intent." This concept is fundamental in contract law because it establishes that the parties involved must genuinely seek to enter into a binding agreement. Without this intention, any agreement made may lack the necessary legal framework to be enforceable in a court of law.

For an agreement to be considered a contract, the parties must demonstrate an intention to create legal obligations that can be upheld if disputes arise. This means that both parties must understand and agree that their communications and actions lead to enforceable rights and responsibilities, rather than just informal arrangements or social agreements.

Other terms mentioned in the choices do not encapsulate this specific requirement. "Capacity to contract" deals with the legal ability of parties to enter into contracts. "Legally binding agreement" is a description of the outcome of a valid contract but does not address the intention aspect directly. "Mutual assent" relates to the agreement on the terms of the contract but does not specifically speak to the requisite intention to create legal relations. Thus, "contractual intent" precisely identifies the necessity of intention in the formation of a valid contract.