The ________ 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 judged based on whether a reasonable person would believe that the parties intended to make a legally binding agreement. This means that subjective intent is not necessarily determinative, and instead the focus is on what a reasonable person would perceive the parties’ intent to be.

The ________ Theory of Contracts States That the Intent to Contract