Latin term meaning an agreement, a meeting of the minds between the parties where all understand and have accepted the contractual commitments made by each other, respectively.
'Meeting of minds'. For a contract to be useful the parties must be in agreement about its provisions. In the event of a possible breach of contract, the party alleged to be in breach may wish to claim that the contract did not exist at all, as there was no certainty about the subject of the contract. However, many contracts are not very precise, to allow flexibility in business dealings, and a court may have to examine other dealings between the contracting parties to determine what their true intentions were.
It is not desirable, on the whole, to insist that all contracts are perfectly precise; this would make it difficult to do business. However, as a general rule, if a contract leaves something to be determined in the future, the determination itself must not require the agreement of the parties.
When people develop a contract, an offer is extended and accepted, and the terms of the offer are worked out. This is the stage where the consensus ad idem comes in, as the parties to the contract discuss the specifics and the details, and focus on developing a contract all are satisfied with. The contract must include adequate consideration, something of value exchanged by all parties, and the capacity for consent must be demonstrated. The final qualification needed for legality is legality of the contract itself; the other conditions may be satisfied, but if the contract is for something illegal, it cannot stand up in court.
What is Doctrine of Frustration?
Certificate of Origin
What is Doctrine of Frustration?
Certificate of Origin
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Consensus ad idem
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