What is mutual assent in a contract?

Mutual assent is an agreement between two parties that intend to form a contract. Also known as a “meeting of the minds,” mutual assent signifies that the parties agree to the terms they are setting, as long as the necessary requirements are in place. Such a consensus is the first step in the contractual process.

Why is mutual assent important?

The ability to define mutual assent is important for both parties entering into a contract. Mutual assent is an important facet of contractual obligation because it encompasses the consent of both parties and their wish to enter into an agreement. In essence, a contractual agreement is the mutual assent of two or more parties put in writing.

What is an example of mutual assent?

Real-Life Example: If you offer to sell your car to someone for $10,000, and they respond with, “I accept your offer to buy your car for $10,000,” mutual assent is established. Mirror Image Rule :The mirror image rule is a principle that dictates that the acceptance must mirror the terms of the offer.