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There are a number of circumstances in which one party in an agreement can prove that there was an absence in intention during
the formation of the contract. If this absence of intention is proven by either party then there is no enforceable agreement or binding
contract. One circumstance for a contract to be not binding is through an 'Ex Gratia' payment, this is when a payment is made out
voluntarily to another party to reimburse some kind of loss.[14] In 2008 undisclosed payments were given to the families of four
domestic soldiers Shiels, Williams, Satatas and Hayward by the Commonwealth to ease their trauma which originated because the
soldiers commited suicide as they suffered from harassment and neglect on duty. The Commonwealth government claimed that
these payments were µEx gratia¶ and therefore meant that they accepted no liability for the causes of the soldiers suicide.[15]

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 However, in British Steel Corp. v.
Cleveland Bridge & Engineering a µletter of intent¶ was signed. Although the work was substantially done,
the anticipated contract never materialised as the parties were unable to agree on terms. Here the court
found that the parties did initially intend to create legal relations with one another. Therefore the British
Steel Corp (BSC) won judgement and Cleveland Bridge & Engineering co. was ordered to recompense
BSC for the work done. [20]


  
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