i. Determining Intention to Create Legal Relations
One way courts determine if parties intended to create legal relations is by examining the nature of the agreement. In commercial agreements, there is a presumption that parties intend to create legally binding obligations. In contrast, social and domestic agreements are generally presumed not to create legal relations unless proven otherwise. This distinction helps courts assess the context and enforceability of the agreement.

ii. Advice to ‘A’ Regarding the Gym Agreement
Legal Issue: The main issue is whether a social agreement to meet at a gym constitutes a legally binding contract.
Advice: In this case, the agreement between ‘A’ and ‘B’ to meet for exercise is likely considered a social arrangement rather than a commercial one. Social agreements generally do not establish legal relations, meaning ‘A’ cannot enforce this agreement in court. Therefore, ‘A’ would have no legal grounds to sue ‘B’ for breach of the agreement.

iii. Advice to ‘A’ on Selling Textiles to ‘B’
Legal Issue: The issue here is whether a commercial agreement between friends can be legally binding.
Advice: Although ‘A’ and ‘B’ are friends, this transaction is a commercial agreement involving the sale of goods. The presumption in commercial agreements is that they intend to be legally binding. Therefore, ‘A’ has a valid basis to sue ‘B’ for the unpaid amount for the textile materials, as friendship does not negate the contractual obligation.

iv. Advice to ‘B’ on the Luncheon Costs
Legal Issue: The issue is whether a promise to attend a social event can be legally enforceable.
Advice: ‘A’s’ promise to attend the luncheon is a social agreement without any consideration that would make it legally binding. Although ‘B’ incurred expenses, there is no enforceable contract for ‘A’ to attend, as social promises are generally not considered legally binding. ‘B’ would not have a strong legal basis to recover the cost of the special dish from ‘A.’