Contract; formation; intention to be legally bound.
Facts: Brown volunteered to work for 'Teen Ranch', a non-profit Christian organisation. Teen Ranch agreed to provide Brown with accommodation, food and the use of the camp facilities while he worked there, but did not promise to pay him any wages. Brown was subject to the rules of the camp. While working at the camp, Brown was injured. He claimed that he had entered into a contract of employment with Teen Ranch and that he was therefore entitled to receive workers' compensation for his injuries.
Issue: Was the agreement between Brown and Teen Ranch intended to be a legally binding contract of employment, entitling Brown to workers' compensation payments?
Decision: The NSW Court of Appeal held that no contract of employment existed between the parties and Brown was not entitled to workers' compensation payments.
Reason: In the circumstances there was 'no positive indication' of an intention by Brown and Teen Ranch to create legally binding relations. Although he received some benefits and was expected to obey camp rules while on duty, Brown's work was purely voluntary and there was no contract of employment.
Compare Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95.