Contracts
Mutual Assent
Definition
Mutual assent, often called a meeting of the minds, refers to the parties' shared agreement on the essential terms of a contract. Under the objective theory of contracts, courts determine mutual assent by examining outward expressions — words and conduct — rather than secret intentions. If a reasonable person in the position of the offeree would conclude that an agreement was reached, mutual assent exists regardless of either party's private reservations.
Example
Two parties shake hands and sign a written agreement after negotiating terms. Even if one party secretly did not intend to be bound, a court may find mutual assent based on the outward manifestation.