John tells Jami he would sell her his grandmother's wedding ring for $100.00. Jami accepts and they exchange the ring and the money. Two days later, John tells Jami that he was only joking and now wants the ring back and he will give her the money back. According to the objective theory of contracts, which statement below is correct?

Question

Quizplus · Accepted Answer

The objective theory of contracts states that the intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person, rather than by the party's own subjective intentions. In this case, even if John was joking, what matters is whether a reasonable person would interpret his actions and words as an intent to contract, which in this scenario, exchanging the ring for money, would likely be seen as a serious offer and acceptance.

John Tells Jami He Would Sell Her His Grandmother's Wedding