Also known as:objective condition · objective test · objective standard
Written by attorneys · grounded in primary & secondary sources — see below
A condition whose satisfaction turns on the occurrence or existence of an external, verifiable event or fact rather than a party's personal judgment or feelings. Such conditions are treated as true or false once the designated event happens or the designated fact is established. Courts and drafters prefer this formulation when an objective test is practicable because it reduces the risk that one party can unilaterally withhold performance on subjective grounds.
Sources & Authorities
How it applies
Common Examples
6
Recusal Conflict Discovered Post-Judgment
Owen Ortega, a litigant in federal court, later learns that the presiding judge had served as a university trustee while the university negotiated a major contract with the opposing party. The parties' settlement agreement contained an objective condition that the judge had no disqualifying interest under 28 U.S.C. § 455(a). Because the condition is measured by an external, verifiable fact rather than the judge's personal belief, the court vacates the judgment and remands for further proceedings.
Counsel's Investigation Duty Measured Objectively
Orson Ochoa was convicted after his lawyer failed to investigate readily available mitigating evidence. The plea agreement included an objective condition that counsel would conduct a reasonable investigation under prevailing professional norms. Because satisfaction of that condition is judged by an external standard of reasonableness rather than the lawyer's subjective view of what was necessary, the court finds deficient performance and prejudice under Strickland.
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Cases
Restatements
Study Supplements
Strickland v. Washington466 U.S. 668 (1984)
Proxy Statement Reliance on Objective Facts
Omar Olson, a shareholder, sues after a merger vote based on a proxy statement that omitted material facts about the transaction's fairness. The merger agreement conditioned the vote on the accuracy of objective financial disclosures. Because the condition turns on verifiable facts rather than the directors' honest belief, the court holds that the omission supports a claim under the securities laws.
Virginia Bankshares, Inc. v. Sandberg[501 U.S. 1083, 1090-1098] (1991)
Judicial Bias Determined by Objective Appearance
Odin Obeng, a litigant, moves to disqualify a judge whose major campaign donor is the opposing party. The recusal statute imposes an objective condition that the judge's impartiality might reasonably be questioned. Because the condition is evaluated from the perspective of a reasonable observer rather than the judge's subjective assurance of fairness, the Court requires recusal.
Caperton v. A. T. Massey Coal Co.556 U.S. 868 (2009)
Stop-and-Frisk Based on Objective Facts
Otis Olsen was stopped and frisked after an officer observed behavior that matched a pattern of recent armed robberies. The Fourth Amendment analysis turns on an objective condition that the facts known to the officer would warrant a reasonable officer in believing criminal activity might be afoot. Because the condition is measured by external, observable facts rather than the officer's personal hunch, the frisk is upheld.
Terry v. Ohio392 U.S. 1, 88 S.Ct. 1868, 20 L.Ed.2d 889 (1968)
Materiality of Proxy Omission Judged Objectively
Octavia Okonkwo, a shareholder, challenges a merger approved after the proxy statement omitted facts showing the transaction was unfair. The agreement conditioned closing on the absence of any material misstatement. Because materiality is an objective condition determined by whether a reasonable shareholder would consider the omitted fact important, the court finds the omission actionable even without proof of subjective reliance.
Mills v. Electric Auto-Lite Co.396 U.S. 375, 385 (1970)
Common questions
Frequently Asked
3
How does an objective condition differ from a subjective satisfaction clause?+
An objective condition is satisfied or not by reference to an external, verifiable event or fact. A subjective satisfaction clause turns on a party's honest personal judgment. When an objective test is practicable, courts prefer the objective formulation to avoid giving one party unilateral power to withhold performance.
What happens when parties use an objective condition but later dispute whether the event occurred?+
Courts apply an objective test to determine whether the designated event has occurred. The condition is treated as true or false once the external fact is established, regardless of either party's personal view of the event's significance.
Why do drafters prefer objective conditions when possible?+
Objective conditions reduce the risk that one party can escape performance by claiming personal dissatisfaction. They also make performance obligations more predictable and lower the chance of forfeiture when the obligee has already conferred a benefit that cannot be returned.
466 U.S. 668 (1984)Criminal Procedure
…complains of the ineffectiveness of counsel's assistance, the defendant must show that counsel's representation fell below an objective standard of reasonableness. Judicial scrutiny of counsel's performance must be highly deferential, and a fair assessment of attorney performance requires that every effort be made to eliminate the…