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Contracts

meeting of the minds

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 York, 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 of the contract for it to be enforceable. While historically, the subjective understanding of each party was considered, modern contract law in New York emphasizes an objective standard. This means that the courts will enforce the terms of a contract based on a reasonable person's interpretation of the contract's clear and unambiguous language, rather than the subjective intent or understanding of the parties. If the language of the contract is clear and unequivocal, the courts will enforce the agreement as written, even if a party claims a different personal understanding of the terms.

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Contracts

meeting of the minds

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Contracts

meeting of the minds

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