In what type of agreement is the intention to create legal relations presumed? In assessing each case, the courts applied certain presumptions to different types of contracts; Thus, it was generally assumed that national or social contracts had not been concluded for the purpose of creating legal relations and it was assumed that trade agreements had such an intention. However, the High Court of Australia has recently stated that presumptions should not be taken into account when determining intent – in any event, intent must be demonstrated without the help of such presumptions. However, it is equally clear that we do not expect our national agreements to be legally binding, with the prospect of a judicial procedure if they fail. The general principle is that the intention to create legal relations is presumed in trade agreements. This can be refuted by the words used in the agreement. The agreement must be very clear as to the nature and effect of this restriction, and the courts are very strict in interpreting these agreements. A clear explicit statement that excludes legal will can be considered effective in two situations: the law will not impose a treaty if there is no intention to create legal relations. Everyone expects to have some legal rights when the purchased goods turn out to be defective or if the services ordered are not provided. The word honor was interpreted to mean that there was no intention to create legal relationships. And the plaintiffs had conceded it. .