Question

Courts employ an objective standard to determine whether two parties intended to enter into a contract.?

1) True
2) False

Answer 1

The statement that courts employ an objective standard to determine whether two parties intended to enter into a contract is False.

Step-by-step explanation:

The statement that courts employ an objective standard to determine whether two parties intended to enter into a contract is False.

When determining whether two parties intended to enter into a contract, courts employ a subjective standard, which focuses on the intent of the parties involved. This means that the court will look at the words and actions of the parties to determine if they had a mutual understanding and agreement to create a legally binding contract.

For example, if two parties engage in negotiations, reach an agreement on the essential terms, and exchange consideration, a court would likely find that they had the intent to enter into a contract, even if they did not use specific contractual language.