In the Catamount Slate Products, Inc.v.Sheldon case, the court found that:

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The court in this case found that the intent of the parties to be bound to a contract is determined by an objective standard of what a reasonable person would have believed based on the words and conduct of the parties. This is known as the objective theory of contract formation. The court rejected the subjective theory, which would have required determining the actual beliefs of the parties. The case did not address the issue of oral agreements reached at mediation.