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Mutual Assent

This lesson explores one of the fundamental requirements for contract formation, mutual assent. Mutual Assent is a mutual manifestation of assent to the terms of an agreement. This lesson looks at how parties establish mutual assent, including manifestations of mutual assent by words and conduct and the effect of misunderstanding. However, the attributes of offer and acceptance are covered in other lessons. This lesson concludes with a sample analysis exercise involving mutual assent.

Learning Outcomes

On completion of the lesson, the student will be able to:

  1. Differentiate between the objective theory of assent and the subjective theory.
  2. Explain the importance of context in determining intent.
  3. Give examples of the parties' intention to be bound or not to be bound by an agreement.
  4. Recognize when a misunderstanding prevents mutual assent.
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