In Edwards v Skyways an ex gratia payment by the claimant's former employer was considered to be outside of the scope of their usual commercial activities and so lacked an intention to create legal relations.

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In Edwards v Skyways, the court held that the ex gratia payment promised by the employer was binding and had an intention to create legal relations, despite being described as "ex gratia". The context was such that the parties intended the agreement to be legally enforceable, especially within the commercial context of an employment settlement.

In Edwards V Skyways an ex Gratia Payment