FCT v SNA Group [2026] FCAFC 10
Law students early in their studies learn that the objective theory of contract is ‘in command of the field’. This case (at [15-21]) explains the principles.
Contract formation and terms depend on the words and conduct of the parties as reasonably understood by reasonable people in their position, not on any actual subjective intention of the parties15. Having it merely in your own mind ‘is nothing’. The objective theory ‘demands an outward manifestation or communication by words and (or) conduct of a mutual assent to contract on particular terms’. Absence of evidence of communication between the parties here led to the finding that no contract arose.
This principle is from Episode 130 of interpretation NOW!
Footnotes:
15 Equuscorp [2004] HCA 55 [34], Ermogenous [2002] HCA 8 [24-25].