The objective standard requires that a third party would perceive that the parties agreed to the terms of the contract and intended for those terms to be legally binding.

Question

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The objective standard is based on how a reasonable third party would perceive the actions and words of the parties to the contract. It does not depend on subjective beliefs or intentions, but rather on what an outside observer would interpret from the situation. Therefore, for a contract to be considered valid, it must appear to a reasonable third party that both parties intended to be bound by the agreed-upon terms.

The Objective Standard Requires That a Third Party Would Perceive