What’s a meeting of minds?

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A meeting of minds in legal terms refers to reaching an agreement on the terms of a contract or arrangement, with each side understanding what is happening. Consensus ad item, meaning “agreement of minds,” is the element of contract law that establishes there is no misunderstanding of what is included in the contract. Legal contracts establish a meeting of minds with clear terms before an agreement is reached, eliminating any wiggle room.

If a group of individuals were to have a meeting of minds about what “meeting of minds” means, they could come up with different definitions. In legal terms, however, it is a distinct term for reaching agreement on the terms of a contract or arrangement. Each side clearly understands what is happening. Everyone involved is on the same page, so to speak, and mutual agreement or mutual assent is the goal: a meeting of minds is the transaction that adds to the binding nature of the agreement itself. While a meeting of minds is an expression used for gatherings of like-minded people and often those who already share an interest and knowledge of a topic, in law, a level of understanding must be established before agreeing.

A Latin phrase consensus ad item, meaning “agreement of minds,” is the element of contract law that closes the door on claims that a legal contract was not understood at the time of signing. In very concrete terms, a meeting of the minds establishes that there is no misunderstanding of what is included in the contract. Carry an offer from one party and acceptance from another with no hidden or vague terms. After an agreement is reached, a confirmation follows that there is a capacity for consensus, or a capacity to understand the terms. The legality of the contract terms themselves is reviewed to complete the process.

Contract law generally involves drafting documents for the exchange of business and real estate goods or services. Employers use contracts to outline the employer’s obligations and terms. Sellers of products, from car parts to whole cars, define the items sold and indicate the price in black and white. The services provided by doctors, lawyers and building contractors are accompanied by contracts that require signing before work begins. All these types of contracts can establish a meeting of minds with statements such as “I understand” or “I agree” before the required signature fields of the parties entering into the contract services or before the exchange of money for the contract goods.

While the content of legal contracts is typically more complicated than plain everyday English, the terms of a clear contract are clearly established before an agreement is reached. While two parties may enter into negotiations with different intentions, the intent blends, or comes to an agreement, in the contract. Having a clear intent, purpose, and end product recorded in writing eliminates wiggle room, as a meeting of minds gets everyone to the same page.




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