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Simple English definitions for legal terms
subjective method
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A quick definition of subjective method:
The subjective method is a way of understanding contracts where the parties involved have a personal understanding of what they agreed to. This approach is not commonly used anymore and has been replaced by the objective theory of contract, which focuses on what a reasonable person would understand from the agreement.
A more thorough explanation:
The subjective method is a way of interpreting a contract based on the parties' subjective intentions or beliefs. This approach is now largely outmoded.
Under the subjective theory of contract, if two parties entered into a contract with different understandings of what the terms meant, the contract would be considered invalid. For example, if one party believed that a car being sold had a working engine, but the other party knew it did not, the contract would not be enforceable.
This example illustrates how the subjective theory of contract focuses on the parties' individual beliefs and intentions, rather than an objective interpretation of the contract's terms.