Meeting of the Minds

From the Latin Latin: meeting (from Old English) + mind (from Old English).

In one sentence

Both parties share the same understanding of a contract's essential terms.

Plain English

A meeting of the minds occurs when both parties to a contract have the same understanding of what they're agreeing to. It's closely related to mutual assent but focuses on whether the parties actually understood each other the same way. If one person thought they were buying a car and the other thought they were leasing it, there's no meeting of the minds. Courts look at what a reasonable person would think the parties intended, not just what they secretly believed.

Ad slot

Example

Tom and Lisa discuss selling a house. Tom thinks the price is $300,000 and Lisa thinks it's $350,000. They shake hands, but there's no meeting of the minds because they don't share the same understanding of the essential term—the price.

Used in a sentence

“The judge ruled that there was no meeting of the minds because the two parties had fundamentally different ideas about what property was being sold.”

Related terms

Mutual Assent

Both parties agree to the same contract terms at the same time.

Contract Formation

The process by which parties create a legally binding agreement.

Misrepresentation

A false statement of fact made to induce someone into a contract.

Fair Dealing

The requirement to act reasonably and honestly in commercial dealings and contract performance.

Course of Dealing

The pattern of past transactions between the same parties, used to interpret current contract terms.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.