Objective and subjective interpretation. One basic dichotomy in contract interpretation is between the subjective and
the objective theory. The subjectivist view stresses party autonomy and the free will of the individual. When
intention and its expression diverge, the subjectivist gives precedence to the intention of the parties. The objectivist
view, in contrast, gives precedence to the external fact of the expression, mainly because social and economic
intercourse requires reliance to be protected. As the objectivist argues, reliance is placed on what others actually say
not on what they meant to say. Early legal systems were, to be sure, formalistic and “objectivist” for other reasons.
This ancient formalism, linked to magical thinking, was characteristic for the early period of Roman law. The
subjective method of interpretation, supported by Christian doctrine, held sway in the 6th century with Justinian's
codification. Until the late 19th century subjective interpretation dominated legal literature on the Continent.
Whether it was equally dominant in practice is less certain. Nevertheless on the Continent, the doctrinal starting
point of the interpretation is, in general, the common intention of the contracting parties.