The intent to form a contract is not based on what a person actually intends but rather on the outward message (manifestation of intent) the person sends to others. Thus, contract intent is based on an objective standard.
What are the difference between this standard and a subjective?
Courts basically disregard the subjective standard because it is not possible for the courts to determine the actual intent of a person in a given circumstance. Rather courts use objective standard.
What's the difference ?
Subjective standard is about the actual state of mind,determine what actual thoughts were of a party regarding the contract and if it was willing or not to enter into the contract
Objective standards are widely used as it uses " rationale standard " as the core. Would a rational person enter such a contract in such a situation ? Is the question that is discusses and the answer of which decides the outcome. The reason objective standard is used is because it minimizes the chance of bias in such decisions and helps determine the outcomes of all similar cases with a consistency.
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