Mutual assent
One of the crucial elements that needs to be present for a contract to be valid is mutual asset. By what is mutual assent? And how is mutual assent in contract law actually used? Here, we define mutual assent so that a deep understanding of what mutual asset - contract wise - is can be achieved.
What is a mutual assent?
A mutual assent definition is that mutual assent is when two or more parties agree on something simultaneously, free from duress or fraud. It is crucial in terms of contract law as contracts are only valid if mutual assent is how a contract was signed. A contract is not enforceable if a contract has been signed without mutual assent from all parties. As a result, a contract’s clauses or terms, cannot be found to be in breach if the contract was originally signed by a party who did not freely agree to those terms and conditions.
How does a mutual assent work?
Mutual assent is such an integral part to ensuring that contracts can be upheld and work as a whole. Mutual assent is when two parties entering into a contract have the ability to agree to what is stipulated within the contract. If mutual assent was not required for a contract to be enforceable, it would be easy to breach a contract with little to no repercussions being felt by the guilty party.
However, when mutual assent is given, a contract can become a company’s true asset. Mutual assent means that both parties know what is required of them, and they are happy to put their name or signature to it. It therefore underlines what the contract seeks to achieve.
Importantly, too, the natural progression to gaining mutual assent is a crucial part of creating a contract. For mutual assent to be given, with an enforceable contract being the end result that both sides want, negotiation is far more likely - meaning that the terms involved in a contract will more likely suit both parties, as opposed to being completely one sided.
Advantages of mutual assent
Mutual assent is a vital concept for contracts and contract law as a whole. Without it, contracts can quickly become meaningless. If contracts cannot be enforced without mutual assent given, that contract is null and void. It is a waste of time creating it and does not achieve what a contract can truly do.
A contract with mutual assent should closely align both sides’ interests and keep all parties abreast of the responsibilities of all involved. As a result, clarity is given as to what the contract should promote - which all parties know the other understands through that very necessary mutual assent.
Contractbook and mutual assent
At Contractbook, the concept of mutual assent goes to the core of why we created our software. Mutual assent ensures the sanctity of contracts so that contracts can be useful tools that a company has in its armory. Without mutual assent a contract can be neither enforceable or reliable, thus missing out on a potential that a valid contract can provide. Our software allows for contracts to be signed easily and quickly, free from fraud, so mutual assent can be quickly achieved.
