On the other hand, where an agreement is made in a commercially, the presumption is the other way around. The court will presume that there was an intention to create legal relations at the time of the agreement unless the parties clearly indicate otherwise with such terms in the contract that says that the agreement is "not subject to the legal jurisdiction of the courts- or "shall not give rise to any legal relationship."" In the case of Edwards v Skyways 1964, the courts ruled that since the Defendant was the employee of the Plaintiff, and the agreement between them was made in that context, as an employer and employee and not as friends or any other form of social relationship, the agreement was legally binding even with the ex-gratia payments by the defendant. The agreement between the two parties are still legally binding because it was made under a commercial context (employer-employee relationship).
Agreement.
An agreement is formed when one party accepts the offer of another and involves a "meeting of the minds-. An agreement may be done in oral, writing, or by conduct. The two things most needed to form an agreement are a valid offer and a valid acceptance. .
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Offer.
An offer is a definite promise to be bound on specific terms. It is the expression to communicate the offeror's willingness to perform a promise for the offeree. If the offeree accepts the offer then a binding agreement has been made between the two parties. A consensual agreement requires a meeting of minds. The terms of the offer must be specific. In addition, the offeror must intend to create legal relations and the offeree must understand that intention. Once an offer is made, it may be accepted until it expires by the terms contained in the offer or by a reasonable lapse in time. It may also be rejected or revoked. An offer is rejected if the offeree communicates his rejection to the offer or if he makes a counter offer.