Meeting of the minds refers to mutual assent by all parties to the formation of a contract. For a meeting of the minds to occur, the parties must agree to the same terms, conditions, and subject matter. Although a meeting of the minds was required under the traditional subjective theory of assent, modern contract doctrine requires only objective manifestations of assent. Nowadays, a meeting of the minds remains a required element for a valid contract but is judged only by the outward expressions of the parties. Thus, a meeting of the minds occurs even if one party subjectively did not agree, as long as both parties’ outward expressions manifested assent.
[Last updated in July of 2023 by the Wex Definitions Team]