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 New Jersey, as in other jurisdictions, the concept of 'meeting of the minds' is fundamental to the formation of a contract. This principle, also known as mutual agreement or mutual assent, dictates that all parties involved must understand and agree to the terms for a contract to be enforceable. While historically, this agreement was assessed based on the subjective understanding of the parties, modern contract law in New Jersey emphasizes an objective standard. This means that the courts will enforce the terms of a contract based on the clear and unambiguous language contained within the document, rather than the subjective intent or understanding of the parties. If the language of the contract is clear, the courts will hold the parties to those terms, even if one party claims a different understanding. This objective approach helps to provide certainty in contractual relationships and ensures that the enforcement of contracts is based on the expressed terms agreed upon by the parties.