Meeting of the minds (also known as mutual agreement, mutual assent, or mutuality) is a principle of contract law that requires the parties to mutually agree to the terms to form an enforceable contract.
Although a meeting of the minds was traditionally required under the subjective theory of assent to contract terms, today’s courts generally only require an objective manifestation of assent—meaning that if the written words of the contract have a clear, unambiguous meaning they will be enforced as written, even if one of the parties claims to have understood them differently.
In Wisconsin, as in other states, the concept of 'meeting of the minds' is fundamental to contract law. It requires that all parties involved in a contract have a mutual understanding and agreement on the terms and conditions of the contract for it to be enforceable. While historically, this understanding was based on the subjective intentions of the parties, modern contract law in Wisconsin emphasizes an objective standard. This means that the courts will enforce the terms of a contract based on the clear and unambiguous language contained within the document, rather than the subjective beliefs or understandings of the parties. If the language of the contract is clear and the parties' actions demonstrate an intent to be bound by those terms, the contract is typically considered valid, even if one party later claims a different understanding of the terms.