Social Agreements Are Not Legally Binding

[18] The general principle is that trade agreements are based on the intention to create legal relations. 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 intent can be considered effective in two situations: normal trade agreements with the government will likely be legally binding, just as is the case with other types of trade agreements, but there may be some political agreements that are not. The case of Australian Woollen Mills is a possible example (in this case too, there was no consideration). This was also the case in Administration of PNG v Leahy. .