Final answer:
An objective standard in contract effectiveness is based on facts and unbiased criteria, while a subjective standard involves personal feelings and interpretations, making mutual agreement more challenging.
Step-by-step explanation:
The difference between an objective and subjective standard in determining the effectiveness of a contract revolves around how the terms and fulfillment of the contract are interpreted and evaluated. An objective standard is one that is not influenced by personal feelings, interpretations, or prejudice; it is based on facts and is often used to assess whether an action or term complies with a specific goal or intent of the contract.
This is akin to the philosophical concept of telos, in which the goodness of an action is evaluated by its effectiveness in achieving a given purpose. On the other hand, a subjective standard is influenced by personal feelings, tastes, or opinions, and it may vary from person to person. This approach could make it challenging for parties to reach a mutual understanding or agreement due to individual variations in interpreting contract terms or valuing contract performance.