The parties to a contract must have a clear understanding of what they are undertaking; that is, the contract must show:
A) mutual agreement.
B) legality of purpose.
C) consideration.
D) competency of the parties.

Question

Quizplus · Accepted Answer

Mutual agreement, also known as "meeting of the minds," is essential for a valid contract, ensuring that all parties have a clear understanding of the terms and conditions.

The Parties to a Contract Must Have a Clear Understanding