Objective theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Question

Quizplus · Accepted Answer

The objective theory of contracts holds that the intent to contract is evaluated based on how a reasonable person would interpret the actions and words of the parties involved. This means that even if the parties did not have a subjective intent to create a legal contract, if their behavior and words would lead a reasonable person to believe that a contract was intended, then a court may find that a contract exists.

Objective Theory of Contracts States That the Intent to Contract