Question

ou are a Justice of the NSW Supreme Court. How will the High Court’s decision in Ermogenous v Greek Orthodox Community affect your future decisions regarding intention and the presumptions regarding social/domestic and commercial agreements?

Answer 1

solution:

Ermorgenous v Greek Orthodox of Community of SA Inc (2002):

Case Facts:

As an incorporated association, the Greek Orthodox Community of SA, has requested Ermorgenous in order to become their head in their satellite church in Australia. It must be noted that Ermorgenous, during the process of invitation, was still in America.

Even so, he decided to accept the said offer and went to Australia, where he became the archbishop in the span of 23 years. His service was compensated with a salary from the Community. When his appointment had ended, the Community did not give Ermogenous the pay for the leaves he had accumulated during his service, as he was considered as an employee within the contract. However, the Community defended themselves by citing that the contract between the parties does not have any intentions to be legally binding.

Case Issue:

The issue of the case was whether or not the manner of appointment of the archbishop has intentions to be a legal employment contract.

Case Decision:

The court decided that the agreement between the parties that the contract was executed with the intentions for it to be legally binding.

Case Reason/s:

The reasoning for the decision of the court was that the facts presented were substantial enough for the intention to be existent. However, it may be argued that when contracting with a religious minister may not be considered as a legally binding contract.  

What are social and domestic agreement?

Where the contract is of a social nature, the law is assumed that the both parties did not indent their agreement legally binding. The majority of social and domestic agreements are not considered to be serious sufficient to influence the court that the agreement was always intended to be binding at the time.

Are social agreements legally binding?

Intention to Create Legal Relationship. To create a legally binding agreement, both parties must intend to enter into a legal relationship. For example, social agreements are not considered valid contracts because the parties don't expect them to be legally binding.

Why is a domestic agreement not a contract?

Domestic contracts are legal agreements entered into by people wishing to set their own terms in their relationships with one another and include cohabitation agreements, marriage contracts and separationagreements. A cohabitation agreement is an agreement between people who either live together or are about to do so.

• As being the Justice for this case I would suggest that that the distinction between social and domestic agreements and commercial agreements can be fine. It can be seen that intention to create legal relations therefore seeks to keep agreements between family and friends outside the courts jurisdiction.
• Nonetheless, exemptions can be made such in circumstances when a non-religious corporation carries out an agreement, suffices such agreement with monetary compensations, and other financial favors towards the minister, or in this case the archbishop.