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 Tennessee, 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 also referred to as mutual assent or mutuality. While historically, the subjective intent of the parties was considered important, modern contract law in Tennessee emphasizes the objective theory of assent. This means that the courts will look to the outward expressions of agreement, such as the written contract terms, to determine if a contract is valid. If the terms are clear and unambiguous, the contract will be enforced as written, regardless of any private or internal misunderstanding by one of the parties. This objective standard helps to provide certainty in contractual relationships and ensures that the enforcement of contracts is based on the parties' expressed intentions rather than undisclosed thoughts or understandings.