Chen-Wishart: Contract Law 2e 
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Diagrams from the textbookChen-Wishart: Contract Law 2e
Chapter 2
1. Why is the test of intention in contract law objective?
Read 2.1.
The sub-questions you should address are:
What does the objective test mean? From whose perspective and based on what information?
Assess the justifications for the objective test?
How does the objective test inform the question about contract theory (i.e. why contracts are enforced)? e.g., if the law only cares about what a party appears to intend (and not what he actually intends), this does not seem to support the will theory of contract, but it is consistent with the reliance theory. You may want to go back to the relevant parts of 1.4.
2. What does the objective test of intention mean (give examples)?
The points you should address are (see 2.1):
The differences between detached, promisor or promisee objectivity,
The differences between skeleton (or formal) and contextual objectivity,
Explain how the meaning of objectivity relates to the problem of mistake as to terms:
as to terms (see 2.2),
in recording the contract (see 6.7), and
as to fact (6.1, 6.2.3).
3. Ada makes Bob a written offer to sell her house to Bob for £20,000. Ada in fact intended to sell for £200,000. Bob accepts immediately; can he enforce the agreement? What further facts would you need to know?
This is a question about the details of the objective test. In particular, when does a reasonable observer have reason to know that another has made a mistake such that his offer or acceptance cannot be taken at face value? You could reason by analogy from Smith v. Hughes, Scriven v. Hindley, Hartog v. Shields. What standard of behaviour does objectivity require?
Ada may want to:
Get out of the alleged contract – how can she do that? For example,
mistake as to term known to the other party (see 2.2)- what further facts are necessary for this?
non est factum (6.6.4.2)- what further facts are necessary for this?
one of the vitiating factors, such as unconscionable bargain- what further facts are necessary for this?
Change the contract to £200,000- can she plead rectification (see 6.7)? What further facts are necessary for this?
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