What is the test for an individual to be bound as if they intended to agree to the terms of a contract?

British Columbia, Canada


The following excerpt is from Parrish & Heimbecker Ltd. v. McLaren Distributors Ltd., 1995 CanLII 1553 (BC SC):

28 In Smith v. Hughes (1871) LR 6 QB 597 Blackburn, J. said at P. 607: "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 party, and that other party upon that belief entered into that 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." I think that is a fair statement of the law today substituting of course, out of a sense of political correctness, the word or words "person" for "man" and "he or she" for "he" wherever they appear in the statement.

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