What is the ratio in Smith v Hughes?

The ratio is that contractual intention is determined objectively - parties are bound by how their words and conduct would appear to a reasonable person, regardless of their actual subjective intention.

What did the court decide in Smith v Hughes?

The court decided that Hughes was bound by the contract for oats because his conduct would have led a reasonable person to believe he was agreeing to the terms, despite his subjective belief about the oats' age.

Why is Smith v Hughes important for contract law?

It established the fundamental objective test for contractual formation, which remains the cornerstone principle for determining whether parties have reached agreement in English contract law.

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