What is the test for an enforceable contract?
British Columbia, Canada
The following excerpt is from Hucul v GN Ventures Ltd., 2022 BCSC 144 (CanLII):
The existence of an enforceable contract requires an objective intention to contract. The test is not what the parties subjectively intended but rather whether a reasonable person in that party’s situation would believe that the party was assenting to the terms proposed by the other party. The actual state of mind and personal knowledge or understanding of the other party are not relevant. In assessing intention to contract, a court is not confined to the four corners of the alleged contract, but may look to all the circumstances, including evidence of past agreements involving other parties, the circumstances in which the alleged agreement was made, and future actions and representations by both parties: Leemhuis v. Kardash Plumbing Ltd., 2020 BCCA 99 at paras. 15–17.
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