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If a reasonable person looks at the case, will he say that there was an intention to create legal relations?

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Legal presumption can be rebutted if there are facts to the contrary

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For example: close friends or family members.

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presumption that the parties DO NOT intend to create legal relation.

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Domestic and social agreements

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Word used: "Subject to contract", "in honour only" or other word in business agreement rebut the legal presumption

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The presumption may be rebutted if there is contract evidence on the facts.

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Why would parties want to enter into business agreement?

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Why would parties want to enter into business agreement?

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Commercial and business agreements

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there is an intention to be bound for the purposes of efficacy of business.

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IF the intention of the parties are unclear, the court will make some presumption

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IF the intention of the parties are unclear, the court will make some presumption

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used to determine whether or not an intention to create legal relations exist. It is not determined by the subjective intention of the parties

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Creates rights and obligation between the parties IF the parties expressly state that intention, the court s will respect it

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It have to be shown that parties had intended the contract to be legally binding between them.

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BEFORE Contract can be legally enforceable

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BEFORE Contract can be legally enforceable