Though one day Australia was under the authorization of England, it has been developed very swiftly. The main concept of the Australian legal system is the intention to create legal relations with the other countries of the world. Through the various case decisions, the concept of the Australian legal system has been found.
Intention to create legal relation
While every case must be considered individually, there are two main assumptions that courts make when dealing with the intention to contract. In a special or domestic arrangement, it is assumed that the parties do not intend to be legally bound by what they agreed to. “In a commercial arrangement, the assumption is that the parties do not intend to be legally bound by an arrangement.” The courts use these assumptions to determine which person should bear the burden of proof when trying to rebut the assumption. In most commercial transactions, that intention is clear. However, in some other commercial transactions and especially in social, domestic or voluntary transactions, there can be confusion.
In social and domestic arrangements, the courts assume that the parties do not intend agreements to be enforceable in a court of law. The onus of proof is on the plaintiff to rebut this assumption with evidence to the contrary. In most social and domestic situations, it would be very difficult to prove there was the intention to make an agreement legally enforceable. For instance, “when a husband and wife are still together when they make an arrangement, the plaintiff would have a very difficult time proving that there was the clear intention for the agreement to be enforceable in a court of law.” “There are some situations where it is easier to prove a contract was indented, such as when husband and wife are separated at the time they enter into an agreement.” “Courts may also be convinced of intention between family members when the economic consequences of a promise are serious”.
The effect of common law in business or commercial arrangements in Australia
In business or commercial arrangements, the courts assume that the parties did intend to enter into a legally enforceable agreement, and the onus of proof, in this case, is on the defendant to rebut the assumption and prove that legal, contractual relations were never indented. “This assumption can be rebutted with the use of clear, unambiguous words expressing the deliberate intention not to be bound.” The business or commercial arrangements of Australia are followed by their state law which has been come from the common law.
Concluding Remark
So from the above discussion, it is to say that the Australian Legal system is originated from the common law of England because for a lot of days, Australia was under the province of England, and still now the Australian Legal system is under the common law, and it has a great effect on Australian commercial and transaction law.