Paul and Ringo are cousins who decide to start a home building business. Paul is a licensed builder, while Ringo is an accountant. They tell their lawyer to draw up a partnership agreement containing their respective rights, duties and obligations in the business. The both sign the deed.

Their business goes well at the start. After a few months, however, they start arguing about management styles in the business and who should really be the boss. One day, Ringo and Paul have a bad argument. Ringo angrily leaves their office and tells Paul: "You will never see me again! I'll start another building business at the other end of town and push you to bankruptcy!" Ringo makes good on his threats: his new business does become successful, which causes the former partnership between him and Paul to lose a lot of money.

Advise Paul whether he can sue Ringo for violating their partnership contract. Ringo argues that he really didn't think their agreement was legally-binding contract, since it was just an agreement between good mates. He would never have signed it if he had known it was meant to be a contract. Is Ringo correct? Explain your answer by citing principles from the elements of a contract, in particular, Intention to create legal relations.