Intention to create legal relations

August 12, 2023

The presence of an intention to create legal relations is a fact-sensitive enquiry to determine whether the relevant words and conduct in an offer and acceptance, as viewed by a reasonable person in the position of the parties, indicate an intention to create a legally binding contract: Balfour v Balfour [1919]. In an ordinary commercial context, there is a presumption that legal relations are intended – Edwards v Skyways Ltd [1964].

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