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

Question

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to
A) ​the intentional theory of contracts.
B) ​the objective theory of contracts.
C) ​the personal theory of contracts.
D) ​the subjective theory of contracts.

Quizplus · Accepted Answer

The objective theory of contracts is used to determine the intent to enter into a contract. Under this theory, the intention of the parties is determined by their outward expressions of assent rather than their internal thoughts or beliefs. In other words, the focus is on what a reasonable person in the position of the other party would have understood from the communications and conduct of the parties. This is the most commonly used theory in contract law.

Bob Claims That Carla Breached Their Contract for Tutoring