In which type of relationship is there a presumption of no intention to create legal relations?

In social and domestic relationships, there is typically a presumption of no intention to create legal relations. This is grounded in the understanding that many interactions within personal relationships, such as those among friends or family, are based on social and moral obligations rather than legal ones. For instance, when friends agree to meet for dinner, it is generally understood that this is not a legally binding contract and that neither party could successfully sue the other for non-compliance.

In contrast, commercial relationships and business partnerships are viewed differently; they are generally considered to have an intention to create legal relations. Parties in these contexts usually intend that their agreements will carry legal weight, often resulting in enforceable contracts. Employment relationships also imply a legal framework, as they involve contracts that outline the rights and obligations of both the employer and employee.

Therefore, the distinction lies in the nature of the relationship, with social or domestic contexts holding a presumption against legal intent, making the answer about social/domestic relationships correct.