objective theory of contract definition

objective theory of contract

Modern (late 19th century) legal concept that a binding agreement exists between two (or more) parties if a reasonable person would judge (from the outward and objective acts of the parties and the associated circumstances) that an offer has been made and accepted. It dispenses with the subjective notion of intention ('meeting of minds') of the parties advocated under the older (early 19th century) subjective theory of contract as being too hazy.

This content can be found on the following page:

http://www.businessdictionary.com/definition/objective-theory-of-contract.html