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 South Dakota, as in other jurisdictions, the concept of 'meeting of the minds' is fundamental to contract law. It requires that all parties involved in a contract have a mutual understanding and agreement on the terms and conditions of the contract for it to be enforceable. This mutual agreement is assessed objectively; what matters is not what each party subjectively believed or intended, but how their words, actions, and the contract's terms would be interpreted by a reasonable person. South Dakota courts will enforce the clear and unambiguous language of a contract as it is written, even if a party claims a different personal understanding. This objective standard helps to provide certainty in contractual relationships and ensures that the enforceable terms are those that are expressly stated and agreed upon by the parties in their written contract.