Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95
Contract; formation; intention to be legally bound; relevant factors.
Facts: The Greek Orthodox Community of SA, an incorporated association which organised the cultural, social, sporting and religious activities for its members, invited Ermogenous, then in America, to become the head of the Greek Orthodox Church in Australia. He accepted the offer and came to Australia where he served as archbishop for 23 years. During this time he was paid a salary by the Community. At the end of his appointment the Community refused to pay him for the accumulated leave that Ermogenous would have been entitled to under a legally binding contract of employment. The Community argued that their agreement with Ermogenous was not intended to be legally binding.
Issue: Could it be inferred from the circumstances that the appointment of the archbishop was intended to be a legally binding contract of employment?
Decision: The agreement was intended to be legally binding and Ermogenous was entitled to payment for accumulated leave.
Reason: The existence of an intention to be legally bound is judged on the basis of all the relevant available facts. The notion of 'presumptions' operating against such an intention in particular types of case can easily distract from the true task of properly evaluating the particular circumstances. An agreement with a minister of religion does not in itself mean the agreement is not intended to be legally binding if other circumstances indicate otherwise, such as when an incorporated non-religious body makes the agreement and it provides monetary and economic benefits to the minister. Compare Teen Ranch Pty Ltd v Brown (1995) 87 IR 308.