CONTRACT?

Is there an AGREEMENT between the parties?

Yes

No

Is the agreement CERTAIN in all material aspects?

Yes

No

Do both parties have CAPACITY to form a contract?

Yes

No

Has there been CONSIDERATION or a substitute thereof?

Yes

No

Did both parties have INTENTION TO ENTER LEGAL RELATIONS?

Yes

No

Commercial agreement?

Yes

No

No contract

Agreement between businesses?

Yes

No

Domestic Agreement: Intention to create legal relations NOT presumed

Considerations

Policy-based agreement?

Yes

No

Did the parties use lawyers?

Yes

No

Honour clause?

Rose & Frank v Crompton

Considerations

Trade union/employer agreement?

Yes

No

Was there certainty of terms?

Yes

No

The parties probably did not intend to create legal relations

Letter of comfort?

Admin of PNG v Leahy (1961)

Car-pool arrangement?

Yes

No

Was there consideration?

Yes

No

The parties probably did not intend to create legal relations

Reward case?

Yes

No

Were the parties on good terms?

Yes

No

The parties probably did not intend to create legal relations

The parties probably did not intend to create legal relations

The parties may have intended to create legal relations.