Under the Objective Theory of Contracts,the Subjective Intent of a Party

question 40

Multiple Choice

Under the objective theory of contracts,the subjective intent of a party to enter into a contract is ________.

• A) determinative
• B) minimally important
• C) as important as the intent of a reasonable person
• D) irrelevant

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Definitions:

Total Product

The aggregate quantity of output produced by an economic unit from a given set of inputs during a specific period of time.

Variable Cost

Costs that change in direct proportion to changes in a firm’s level of production.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.