Question 1

Which of the following is NOT one of the possibilities identified by the High Court in Masters v Cameron (1954)91 CLR 353?

Accepted Answer

A) That the parties had reached final agreement. 
B) That the parties had reached agreement but just wanted the deposit to be paid. 
C) That the parties had reached agreement but wanted it to be recorded. 
D) That the parties had postponed agreement until a formal contract was signed. 
A) That the parties had reached final agreement. 
B) That the parties had reached agreement but just wanted the deposit to be paid. 
C) That the parties had reached agreement but wanted it to be recorded. 
D) That the parties had postponed agreement until a formal contract was signed. B

Question 2

In which type of agreement is the onus on the defendant to show that legal relations were not intended?

Accepted Answer

A) Domestic agreements. 
B) Social agreements. 
C) Commercial agreements. 
D) Voluntary agreements. 
A) Domestic agreements. 
B) Social agreements. 
C) Commercial agreements. 
D) Voluntary agreements. C

Question 3

In Shortall v White [2007] NSWCA 272 the presumption against intention was rebutted because:

Accepted Answer

A) the parties had separated at the time. 
B) the agreement would have been against public policy. 
C) the promise was made before the relationship had broken down. 
D) the promise was made before they were married. 
A) the parties had separated at the time. 
B) the agreement would have been against public policy. 
C) the promise was made before the relationship had broken down. 
D) the promise was made before they were married. A

Question 4

By its nature,a commercial contract can only be intended as legally binding by the parties.

Accepted Answer

A) True 
 B)False

Question 5

The intention of the advertiser should be properly reflected in the advertisement.

Accepted Answer

A) True 
 B)False

Question 6

The existence or an intention to create a legally binding agreement is a question of law.

Accepted Answer

A) True 
 B)False

Question 7

Describe the purpose of a letter of comfort.

Accepted Answer

A letter of comfort is given by a parent

Question 8

Which of the following would best describe the decision in the case of Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799?

Accepted Answer

A) The letter was a 'comfort letter.' 
B) The letter written by the holding company was not contractually binding. 
C) The letter was not a guarantee. 
D) All of the above. 
A) The letter was a 'comfort letter.' 
B) The letter written by the holding company was not contractually binding. 
C) The letter was not a guarantee. 
D) All of the above.

Question 9

By including the wording 'this agreement is subject to contract' it is clear that the parties do not yet intend to be legally bound to a contract.

Accepted Answer

A) True 
 B)False

Question 10

A subjective test is used to determine the state of minds of the parties.

Accepted Answer

A) True 
 B)False

Question 11

In commercial agreements,the courts presume that the parties did intend to create legal relations.

Accepted Answer

A) True 
 B)False

Question 12

In relation to the question of whether the parties could be objectively seen to intend to create legal relations,the courts take into account a number of factors.What are those factors?

Accepted Answer

The courts take into account the followi

Question 13

When a business advertises their product,the courts generally presume that:

Accepted Answer

A) the merchant did not intend to enter into contracts with purchasers of their product. 
B) the merchant did not intend to immediately create legal relations with viewers of the advertisement. 
C) the merchant intended any contract with a purchaser to be legally binding. 
D) the merchant intended their statements to be legally binding. 
A) the merchant did not intend to enter into contracts with purchasers of their product. 
B) the merchant did not intend to immediately create legal relations with viewers of the advertisement. 
C) the merchant intended any contract with a purchaser to be legally binding. 
D) the merchant intended their statements to be legally binding.

Question 14

What is the courts' rationale for presuming that agreements made between family members are not intended to be legally binding? Is this a fair presumption?

Accepted Answer

The courts' rationale for presuming that

Question 15

In Darmanin v Cowan [2010] NSWSC 1118 the court found that the parties did not intend to be legally bound because:

Accepted Answer

A) Ms Darmanin had not spent money fitting out the cottage. 
B) Ms Darmanin accepted assistance from the Cowans. 
C) the Cowans offered assistance to Ms Darmanin. 
D) there was a lack of documentation of the arrangement. 
A) Ms Darmanin had not spent money fitting out the cottage. 
B) Ms Darmanin accepted assistance from the Cowans. 
C) the Cowans offered assistance to Ms Darmanin. 
D) there was a lack of documentation of the arrangement.

Question 16

Why did the decision in Banque Brussels Lambert SA v ANI Ltd (1989)21 NSWLR 502 differ from the decision in Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799?

Accepted Answer

A) Kleinwort Benson was an English case. 
B) The words used in the Banque Brussels case were promissory in nature. 
C) The Banque Brussels case involved a subsidiary. 
D) The Kleinwort Benson case involved a subsidiary. 
A) Kleinwort Benson was an English case. 
B) The words used in the Banque Brussels case were promissory in nature. 
C) The Banque Brussels case involved a subsidiary. 
D) The Kleinwort Benson case involved a subsidiary.

Question 17

In which of the following cases did the court decide that a gentleman's alleged promises to his mistress were not contractually binding?

Accepted Answer

A) Ashton v Pratt (No 2)[2015] NSWCA 12. 
B) Cohen v Cohen [1929] HCA 15. 
C) Darmanin v Cowan [2010] NSWSC 1118. 
D) Shortall v White [2007] NSWCA 272. 
A) Ashton v Pratt (No 2)[2015] NSWCA 12. 
B) Cohen v Cohen [1929] HCA 15. 
C) Darmanin v Cowan [2010] NSWSC 1118. 
D) Shortall v White [2007] NSWCA 272.

Question 18

The decision in Jones v Vernon Pools Ltd [1938] All ER 626 was based on the fact that:

Accepted Answer

A) the agreement was a social one. 
B) the agreement was 'subject to contract.' 
C) the ticket had been lost. 
D) the coupon contained an 'honour clause.' 
A) the agreement was a social one. 
B) the agreement was 'subject to contract.' 
C) the ticket had been lost. 
D) the coupon contained an 'honour clause.'

Question 19

A volunteer worker may not be covered for workers compensation because:

Accepted Answer

A) they are not an employee. 
B) they are unlikely to work on a regular basis. 
C) they are working under a domestic agreement. 
D) they only work for non-profit organisations. 
A) they are not an employee. 
B) they are unlikely to work on a regular basis. 
C) they are working under a domestic agreement. 
D) they only work for non-profit organisations.

Question 20

In determining whether the parties to an agreement intended to form a contract,why do the courts so often rely upon legal presumptions?

Accepted Answer

A) Because parties frequently lie about their intention. 
B) Because it is rare for both parties to have the same intention. 
C) Because parties rarely express their intention. 
D) Because that is the law. 
A) Because parties frequently lie about their intention. 
B) Because it is rare for both parties to have the same intention. 
C) Because parties rarely express their intention. 
D) Because that is the law.

Exam 8: Intention to Create Legal Relations

Which of the following is NOT one of the possibilities identified by the High Court in Masters v Cameron (1954)91 CLR 353?

In which type of agreement is the onus on the defendant to show that legal relations were not intended?

In Shortall v White [2007] NSWCA 272 the presumption against intention was rebutted because:

By its nature,a commercial contract can only be intended as legally binding by the parties.

The intention of the advertiser should be properly reflected in the advertisement.

The existence or an intention to create a legally binding agreement is a question of law.

Describe the purpose of a letter of comfort.

Which of the following would best describe the decision in the case of Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799?

By including the wording 'this agreement is subject to contract' it is clear that the parties do not yet intend to be legally bound to a contract.

A subjective test is used to determine the state of minds of the parties.

In commercial agreements,the courts presume that the parties did intend to create legal relations.

In relation to the question of whether the parties could be objectively seen to intend to create legal relations,the courts take into account a number of factors.What are those factors?

When a business advertises their product,the courts generally presume that:

What is the courts' rationale for presuming that agreements made between family members are not intended to be legally binding? Is this a fair presumption?

In Darmanin v Cowan [2010] NSWSC 1118 the court found that the parties did not intend to be legally bound because:

Why did the decision in Banque Brussels Lambert SA v ANI Ltd (1989)21 NSWLR 502 differ from the decision in Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799?

In which of the following cases did the court decide that a gentleman's alleged promises to his mistress were not contractually binding?

The decision in Jones v Vernon Pools Ltd [1938] All ER 626 was based on the fact that:

A volunteer worker may not be covered for workers compensation because:

In determining whether the parties to an agreement intended to form a contract,why do the courts so often rely upon legal presumptions?

Legal Foundations

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How Law Is Made: Precedentstatute Law

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Introduction to Contracts

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Introduction to Companies and Incorporated Associations

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