Objectivity and Subjectivity in Contract Law
Objectivity and Subjectivity in Contract Law
Contract Law is concerned mostly with an objective view of the parties intentions.
1. Promisor Objectivity
This version of objectivity is based on an objective view of what the Promisor really meant by his or her words. In other words the promise should be looked at as it would be by a reasonable observer placed in the position of the promise. The words are to be understood as they would appear to a reasonable person. (Objectivity applied look at the American case of Lucy V. Zehmer to understand whether humour has a part to play in contract Law).
2. Promisee Subjectivity
The subjective understanding of the promisor is relevant if he or she really knows the other party will not grasp the true meaning of her or his words. The subjective view of the parties are clearly relevant to the question of evidence as to what each believed they were agreeing. In two areas in particular, subjectivity has a part to play, namely (a) implied terms and (b) mistaken agreement.
3. Detached objectivity
This involves the judge taking on the role of a hypothetical third party. Lord Denning was a proponent of this approach. In Solle V. Butcher he stated:
“…Once a contract has been made, that is to say, once the parties, whatever their innermost states of mind, have to all outward appearances agreed with sufficient certainty in the same terms on the same subject-matter, then the contract is good. Neither party can rely on his own mistakes to say it was a nullity from the beginning, no matter that it was a mistake which to his mind was fundamental, and no matter that the other party knew that he was under a mistake”.
