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3 Pages Topic Notes Year Uploaded: 2024

Lecture 7 (W4): INTENTION TO CREATE LEGAL RELATIONS Legal consequences may be attracted in formal settings such as employment or the sale of valuable property. Presumptions Ermogenous v Greek Orthodox Community of SA The appellant was employed by the Greek Orthodox Church as the Archbishop. He claimed that there were certain payments had to be paid after he resigned. The Full Court allowed an appeal as the parties had not intended to create legal relations and the Archbishop appealed to the High Court. “There is therefore no presumption that contracts between religious or associated bodies and ministers of religion, of their nature, are not intended to be legally enforceable.” Commercial transactions Banque Brussels Lambert v Australian National Industries Judgement for the plaintiff on liability Domestic and social agreements Todd v Nicol The defendant invited the Todds to move from Scotland to Australia to share her house and promised to alter her will so that the house would be the plaintiffs’. They resided with the defendant for several years however the relationship deteriorated, and the defendant asked the plaintiffs to leave the house. PRIVITY “…only a person who is a party to a contract can enforce the contract and incur obligations under it” No third party can be sued under the contract o A contract cannot confer an enforceable benefit nor can it impose an enforceable burden Coulls v Bagot’s Executor and Trustee There was a contract expressly signed between Mr Coulls and Bagot’s Executor. Soon after Mr Coulls died, the executor questioned whether they owed a legal obligation to the plaintiff’s wife despite that she was not mentioned in the agreement. Signing it did not make her a promisee and she was not a party to the contract so therefore did not have a right to demand payment of the royalties.


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