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Courts typically use the "objective test" to determine if the parties had the intention to create legal relations. This test assesses the circumstances surrounding the agreement, focusing on how a reasonable person would interpret the parties' conduct and communications. If the context suggests that both parties intended to enter into a legally binding contract, the courts will recognize that intention. Common examples include distinguishing between social or domestic agreements, which generally lack such intention, and commercial agreements, which usually presuppose a legal commitment.

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