Intention to create legal relations Every set of promises does not constitute a

contract. It is essential that the promises be made with an intention

to either create a legally binding promise or to create legal relations 1. A mere
that there was no intention
gratuitous promise does not constitute a contract 2.
on the part of the government to create legal relations; it was instead a
government scheme to promote welfare of the local people..

"The Legal Character of International Agreements" (1953), B.Y.B.I.L. vol. 30 381, has said: "Certain
provisions in international agreements appear to negative any intention to create legal relations. These
are provisions which in one way or another leave it to the parties themselves to determine the extent of
the obligations they have assumed and the mode of performance." He went on, to say: "Similarly, it is
doubtful whether undertakings 'to use best endeavours' or 'to take all possible measures' can in most
cases amount to more than declarations of policy, or of good will towards the objects of the
agreement."

Commonwealth v Tasmania ("Tasmanian Dam case") (01.07.1983 - AUSH) : MANU/AUSH/0014/1983

Stephen J. took a different view. He held that a treaty will attract the power only if it deals with a matter
of international rather than of merely domestic concern, and that "it will not be enough that the
challenged law gives effect to treaty obligations";

Commonwealth v Tasmania ("Tasmanian Dam case") (01.07.1983 - AUSH) : MANU/AUSH/0014/1983