Question

The objective theory of contract is:

a. is a legal theory by ehich intent of parties to enter a contract is determined and provided that a party's intention to enter a contract is judged by outward, ojective facts as interpreted by a reasonable person, rather than by the partys' secret subjective intention.

b. Is a rule in contract law that the intention of parties to contract id determined by their subjective personal intention of whether they wanted or intended to enter into a contract.

c. It allows a party to an agreement or contract to provide an unecpted reason for entering into an agreement or contract

d. it relates only to a parties motivations for entering into a contract

Answer 1

The objective theory of contract is:

a. is a legal theory by which intent of parties to enter a contract is determined and provided that a party's intention to enter a contract is judged by outward, objective facts as interpreted by a reasonable person, rather than by the party's secret subjective intention.

This is because, in case of the objective theory of contract, the contract agreement is based on objective facts determined by a third person rather than the party's own intentions about the contract.