If the intention not to create legal relations

is made clear in a commercial agreement, the Court will respect the express

wish of the parties.

In principle, where contracts arise in a commercial setting, the reasonable person test for identifying whether or not there is an intention to create legal relations is likely to be satisfied in many cases.

The judge will apply the objective test, commonly referred to as the reasonable person test.

The judge must try to find out whether the subjective

intention of the parties was to create legal relations.