Legal Definitions - mutual assent

Mutual assent is a fundamental concept in contract law, meaning that all parties involved in an agreement understand and agree to the same essential terms. It signifies a shared understanding and willingness to be bound by the contract's provisions. Crucially, this agreement is determined not by what someone *privately* intends, but by what their words and actions would *objectively* convey to a reasonable person. This shared understanding is most commonly established through one party making a clear offer and the other party providing a clear acceptance of that offer.

Here are some examples illustrating mutual assent:

• Example 1: Purchasing a service online

  A customer, David, visits a website offering online language lessons. He clicks on a package that clearly states "10 hours of private tutoring for $300" and proceeds to the checkout page, where he enters his payment information and clicks "Confirm Purchase." The language school's system then sends him an email confirming his enrollment and payment.

  Explanation: The website's display of the language lesson package with its price constitutes an offer. David's action of selecting the package, entering payment details, and clicking "Confirm Purchase" serves as his clear acceptance of that offer. Both parties objectively demonstrated their agreement to the specific terms of the service and its cost, thereby establishing mutual assent.

• Example 2: Selling a used item

  Maria posts an advertisement online to sell her used bicycle for $150. John sees the ad and messages Maria, stating, "I'll buy your bicycle for $150. Can I pick it up tomorrow?" Maria replies, "Yes, that works. See you then."

  Explanation: Maria's online advertisement for the bicycle at a specific price is an offer. John's message explicitly stating his intention to buy the bicycle for that exact price is his acceptance of the offer. Maria's confirmation solidifies this. Their exchange objectively shows that both Maria and John understood and agreed to the sale of the bicycle for $150, demonstrating mutual assent.

• Example 3: A construction bid

  A homeowner, Ms. Chen, requests bids from several contractors to renovate her kitchen. Contractor A submits a detailed written proposal outlining the scope of work, materials, timeline, and a total cost of $25,000. Ms. Chen reviews the proposal, signs it, and returns it to Contractor A.

  Explanation: Contractor A's written proposal is a formal offer to perform the kitchen renovation under specific terms and for a defined price. Ms. Chen's act of signing and returning the proposal signifies her clear acceptance of those terms. Through their actions, both parties objectively manifested their agreement to the same conditions for the renovation project, thereby establishing mutual assent.