Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to
A)the conscious theory of contracts.
B)the objective theory of contracts.
C)the personal theory of contracts.
D)the subjective theory of contracts.

Question

Quizplus · Accepted Answer

The intent to enter into a contract is determined with reference to the objective theory of contracts. This theory provides that the intent to enter into a contract should be based on how a reasonable person in the parties' position would interpret their words and conduct. Therefore, Carly's subjective intentions are not relevant to the determination of whether a contract was formed or not.

Bobbie Claims That Carly Breached Their Contract