Can someone explain this paragraph (chapter 11)

111d The Objective Theory of Contracts In determining whether a contract has been formed, the element of intent is of prime importance. In contract law, intent is determined by what is called the objectivetheoryofcontracts, not by the personal or subjective intent, or belief, of a party. The theory is that a party's intention to enter into a legally binding agreement, or contract, is judged by outward, objective facts. The facts are as interpreted by a reasonable person, rather than by the party' 5 own secret, subjective intentions. Objective facts may include: 1. What the party said when entering into the contract. 2. How the party acted or appeared [intent may be manifested by conduct as well as by oral or written words). 3. The circumstances surrounding the transaction. Case in Point 11.1 written words]. 3. The circumstances surrounding the transaction. Case in Point 11.1 Pan Handle Realty, LLC, built a luxury home in Westport, Connecticut. Robert Olins signed a lease for the property and gave Pan Handle a check for the amount of the annual renti$138,000. Olins planned to move into the home on January 28, but on lanuary 27, Olins's bank informed Pan Handle that payment had been stopped on the rental check. Olins then told Pan Handle that he was "unable to pursue any further interest in the property." When Pan Handle was not able to find a new tenant, it led a lawsuit in a Connecticut state court against Olins, alleging that he had breached the lease. Olins argued that when he signed the lease, he did not intend to be bound by it. The court ruled in Pan Handle's favor and awarded $138,000 in damages, plus $8,000 for utilities, interest, and attorneys' fees. The decision was affirmed on appeal. The objective fact, as supported by the evidence, was that the parties intended to be bound by the lease when they signed it. The fact that Olins had a change ofheart after signing the contract was irrelevant. *