Subjective Theory of Contracts

The Subjective Theory of Contracts suggests that the meaning and intention behind a contract depend heavily on the personal perceptions and understandings of the parties involved. In this view, what each party thinks and feels about the agreement plays a crucial role in its interpretation and enforcement, rather than just the written terms. Essentially, it emphasizes that different individuals may view their rights and obligations differently, influenced by their unique experiences and intentions when entering the contract. This theory contrasts with more objective approaches, which focus strictly on the language and terms of the contract itself.