The ________ theory of contracts holds that the intent to enter into an express or implied-in-fact contract is judged by the ________ person standard.
A) objective; reasonable
B) subjective; reasonable
C) objective; professional
D) subjective; professional
E) objective; subjective

Question

Quizplus · Accepted Answer

The objective theory of contracts holds that the intent to enter into a contract is based on the reasonable person standard, meaning that an objective, reasonable person would interpret the parties' actions and words as evidencing intent to enter into a contract. This is different from the subjective theory which focuses on the parties' actual subjective intent, which can be difficult to determine.

The ________ Theory of Contracts Holds That the Intent to Enter