An officer of International Sales Corporation makes overtures to a representative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever

a. the officer subjectively intended them to mean.

b. a reasonable person in the officer's position would think they meant.

c. a reasonable person in the representative's position would think they meant.

d. the representative subjectively thought they meant

C

Explanation:

An officer of International Sales Corporation makes overtures to a representative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever a reasonable person in the representative's position would think they meant

The objective theory of contracts holds that an agreement between parties is legally binding if, in the opinion of a reasonable person who is not a party to the contract, an offer has been made and accepted. It just has to be a mutual assent not necessarily a written or binding contract. Mutual assent is considered the meeting of the minds between two or more parties that forms the foundation of a contract. At the time of mutual assent, it can be said that a legally binding contract exists. There is also a mutual understanding of what each party promises and that the promise can be carried out as agreed. The court will weigh this two things, offer and acceptance, when making a decision on whether both parties actually reached mutual assent.