Crystal field theory (CFT) explains the behavior of coordination compounds based on electrostatic interactions between ligands and metal ions. CFT was proposed by Hans Bethe in 1929 and modified by Van Vleck to include some covalent interactions. For an octahedral complex, ligands split the metal's degenerate d-orbitals into two sets - the lower energy t2g and higher energy eg sets. The size of this splitting, known as Δo, depends on factors like the ligands and metal ion. CFT can be used to understand properties like color, magnetism, and crystal structures of coordination compounds.