The starting point for the analysis is the well-established principle that, in the context of commercial dealings between parties at arm’s length, there exists a strong presumption that communications and conduct are intended to have legal effect. The presumption was authoritatively stated by Megaw J. in EDWARDS VS. SKYWAYS LTD. [1964] 1 WLR 349, where the learned Judge observed, at page 355 as follows: “In the present case, the subject-matter of the agreement is business relations, not social or domestic matters. There was a meeting of minds - an intention to agree. There was admittedly consideration for the company’s promise. I accept the propositions of counsel for the plaintiff that in a case of this nature the onus is on the party who asserts that no legal effect was intended, and the onus is a heavy one.”
NDK FINANCIAL SERVICES LIMITED vs. SAFKOS FARMS & 2 ORS [2026] SLR (SC) 60 · Supreme Court · 2026 · AMADU JSC
Read it in the judgment