판결 이유
The question is not what was the intention of the parties but what would a reasonable person understand the parties' intentions to be from their words and conduct. The objective test of agreement prevails over subjective intentions.
사실관계
A racehorse trainer (Hughes) was shown a sample of oats by a farmer (Smith) and agreed to buy a quantity. Hughes believed he was buying old oats (which were better for horses) but received new oats. He refused to pay. There was no express statement that the oats were old.
판결 요약
The court held that the contract must be assessed objectively — by what a reasonable person would understand from the parties' words and conduct. If the buyer's mistake was not induced by the seller and the seller made no representation about the oats being old, the buyer was bound. The case established the objective principle in contract formation.
주요 인용문
"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 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."
— Blackburn J
후속 처리
The objective principle stated by Blackburn J is consistently cited as the foundation of objective contract interpretation in English law.