Issues relating to the will in contracts usually cause a lot of difficulty. This is because will is clearly related to the mental and personal elements. Difficulties arise in defining the concept on the first hand, and in proving it on the other. Hence, the issue of intention to donate, which forms the mental element of the Grant Contract. This study attempts to simplify this difficulty by discussing the function of the intention to donate in Grant Contract. The function of intention to donate in Grant Contracts is twofold: formative and normative. By formative is meant the role of intention to donate in the formation and creation of the Grant Contract as seen in the elements of the contract. Normative refers to the role of intention to donate in distinguishing the Grant Contract from other legal actions, which might overlap with it in some actual cases.