What is the test for an individual to be bound under a contract?
British Columbia, Canada
The following excerpt is from Langley Lo-Cost Builders Ltd. v. 474835 Ltd., 2000 BCCA 365 (CanLII):
One of the leading cases is Smith v. Hughes (1871), L.R. 6 Q.B. 597 at 607, where Blackburn J. wrote: If whatever a man’s real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other part, and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other party’s terms.
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