In contract law, why is the meeting of the minds so important?
In the modern world, contracts form a critical component of doing business. A major component of this development has been that contracts can take many forms. For instance, there are written and unwritten contracts. This means that an agreement between different parties can amount to a contract. For the parties involved, it is important to understand the individual elements that constitute a contract. For most part, this involves a consensus on all the elements of the contract.
A meeting of minds is critical for there to be a valid contract. This is based on the main elements of a valid contract; offer, acceptance, consideration, and mutual intent to enter into agreement (Kazez, 2006). These four elements emphasize the need to have clear and understood terms of agreements between the parties in a contract. This means that all parties must understand the offer made, and decide whether or not to accept it. Without an offer, there would not be a contract. The subjects must then freely deliberate on whether or not to accept the offer.
A consideration means that there has to be a trade for the offer made. It further emphasizes on the need for all the parties to be aware of what they stand to gain, and at what cost. This is referred to as the consideration. In order to seal a contract, it has to be determined that the parties mutually agreed to the terms stipulated. They also have to legally competent and in capacity to do so. In contract law, it is important to pay attention on the meeting of minds between all the parties because it is the only way to obtain a valid contract.
*Kazez, W. H. (2006). Contract Law 101.111… Math Horizons, 14(2), 32-33.