Which of the Following Statements Best Explains Why the Courts

question 70

Multiple Choice

Which of the following statements best explains why the courts use an objective test to determine whether or not there is an intention to create legal relations?

• A) The law of contracts is intended to protect reasonable expectations.
• B) It would not be fair to recognize a contract unless both parties actually intended to be bound by that contract.
• C) The courts are confident that people do not lie in court.
• D) An objective test is used if a party is a company, while a subjective test is used if a party is a human being.
• E) The reasonable person test is only useful for determining subjective intentions.

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Definitions:

Tort Liability

Legal responsibility arising from civil wrongs not arising out of contractual obligations, resulting in harm or injury to another.

Principal

The main party to a transaction, agreement, or contract, often responsible for fulfilling the obligations set within.

Third Persons

Individuals who are not a direct party to a legal agreement or transaction but may be affected by it or have certain rights or obligations related to it.

Consideration

Something of value exchanged between parties in a contract, making the agreement binding and legally enforceable.