Case Principles Issue Decision Reason

Carlill v Carbolic Smoke Ball Co Contract formation Could it be inferred from the Sufficient circumstances to infer L1000 had been deposited in the
[1893] 1 QB 256 (p. 75, 86, 96) Intention to be legally circumstances that the promise to that the promise was intended to bank and expressly stated so in the
bound pay the advertised reward was be contractually binding ad
intended to be legally binding

Balfour v Balfour [1919] 2 KB Contract Formation Was an agreement of this type, The agreement was not legally Spouses make many domestic
571 (p. 76) Intention to be legally made between married persons, enforceable because in the agreements, but these agreements
bound legally enforceable> circumstances it could not be do not become legally enforceable,
Agreements between inferred that it was intended to be because the parties did not intend
spouses legally enforceable that they should be attended by
legal consequences

Cohen v Cohen (1929) 42 CLR Contract Formation Was the promise to pay a dress Dixon J concluded that in the The parties did no more than
91 (p. 76) Intention to be legally allowance intended to create a circumstances it could not be discuss and concur in a proposal
bound legally enforceable agreement? inferred that legally enforceable for the regular allowance to the
Agreements between relations were intended wife of a sum which the
spouses considered appropriate to their
circumstances at the time of
marriage
Merritt v Merritt [1970] 1 WLR Contract Formation Was the promise to transfer the It could be inferred from the Whether or not an agreement is
1211 (p. 77) Intention to be legally house to Ms Merritt intended to circumstances that the agreement intended to be legally enforceable
bound be a legally enforceable one was intended to be legally is something that is decided
Agreements between despite the parties being spouses enforceable objectively- the court asks what
spouses intention can reasonably be
inferred from the circumstances at
the time of the agreement- the
goodwill between married persons
has broken down and it can be
inferred that they no longer rely on
honourable understandings and
that they intend their agreements
to create legal obligations
Ermogenous v Greek Orthodox Contract formation Could it be inferred from the The agreement was intended to be The existence of an intention to be
Community of SA Inc (2002) Intention to be legally circumstances that the legally binding and Ermogenous legally bound is judged on the
209 CLR 95 (p. 79) bound appointment of the archbishop was entitled to payment for basis of all relevant and available
Relevant factors was intended to be a legally accumulated leave facts- an agreement with a
binding contract of employment minister of religion does not mean
in itself that the agreement is not
intended to be legally binding
Esso Petroleum Co Ltd v Did Esso have the intention to be Held that the terms of the The offer of commemorative coins
Commissioners of Customs and legally bound by the offer to give promotion were intended to be a was a commercial promotion from
Excise [1976] 1 All ER 117 (p. the coins to motorists who legally binding promise- the coins which Esso and its station
80) purchased its petrol were therefore reason to the operators stood to gain, and the
purchase tax coins were only offered to its
customers- although the offer of
the coins was described as a ‘gift’,
it could be inferred from the
commercial circumstances that is
 was a promise made with an
intention to be legally bound
Masters v Cameron (1954) 91 Contract formation Since the essential terms of the In the circumstances, it was clear Making an agreement subject to a
CLR 353 (p. 80) Intention to be legally contract had been agreed by the that Cameron had intended not to condition does not always have the
bound parties when they signed their be bound until a formal contract same effect
Conditional intention initial agreement, was a contract was prepared and signed
created even before the
preparation of a formal contract
by Cameron’s solicitors?
Thomas v Thomas (1842) QB Contract formation Had sufficient consideration been Ms Thomas was entitled to enforce The promise to pay L1 each year
851 (p. 84) Token consideration provided by Ms Thomas to make the agreement and keep the house in good
sufficient the agreement with the executors condition was not equivalent in
legally enforceable? value to the benefit she was
receiving however consideration
doesn’t need to be of equivalent
value
Stylk v Myrick (1809) 170 ER Contract formation Had the crew given consideration The crew had given nothing of When they originally signed on for
1168 (p. 85) Insufficiency of past for the captain’s promise, so as to value in exchange for the captain’s the voyage, the crew had made a
consideration create a binding contract promise- no binding contract for promise to do whatever was
extra pay was created necessary in case of any
emergencies to bring the ship
home safely

Musumeci v Winadell Pty Ltd Contract formation Had Musumeci given sufficient The promise to reduce the rent
(1994) 34 NSWLR 723 (p. 89) Consideration consideration in exchange for was properly supported by
Practical benefit or Winadell’s promise to reduce the consideration and
detriment as rental so as to create a binding therefore legally binding-
consideration agreement? the consideration obtained
f