Meeting of the minds (also known as mutual agreement, mutual assent, or mutuality) is a principle of contract law that requires the parties to mutually agree to the terms to form an enforceable contract.
Although a meeting of the minds was traditionally required under the subjective theory of assent to contract terms, today’s courts generally only require an objective manifestation of assent—meaning that if the written words of the contract have a clear, unambiguous meaning they will be enforced as written, even if one of the parties claims to have understood them differently.
In North Carolina, as in other jurisdictions, the concept of 'meeting of the minds' is fundamental to contract law. It refers to the mutual understanding and agreement on the terms of the contract by all parties involved. For a contract to be enforceable, there must be a clear offer, acceptance, and mutual assent to the essential terms of the agreement. North Carolina courts typically adhere to the objective theory of contracts, which means that the courts look to the outward expressions of the parties (such as written agreements or conduct) rather than their internal, subjective intentions. If the terms of the contract are clear and unambiguous, the courts will enforce the contract as written, even if a party claims a different understanding of the terms. This objective standard helps to provide certainty in contractual relationships and ensures that the enforcement of contracts is based on the parties' expressed intentions as manifested in their agreements.