Intention to create legal relations: the end of presumptions

Traditionally, courts have presumed that commercial parties intend to create legal relations when entering into agreements and that family members do not. Although not without their critics, until recently these twin presumptions appeared immutable. This article examines the trend to reduce the emphasis on these presumptions by some members of the judiciary in the selection of Australian and New Zealand cases and proposes that as a consequence of the High Court's decision in Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95 the intention to create legal relations presumptions should no longer be used in any context. It concludes by considering the implications for this area of law.