Contracts
Which of the following best describes mutual consent (mutual assent) in contract formation?
ABoth parties sign the document on the same day
BA definite offer is made and unconditionally accepted✓ Correct
CBoth parties have an attorney review the contract
DThe contract is notarized by a public official
Explanation
Mutual consent (mutual assent) is created when one party makes a clear, definite offer and the other party accepts it unconditionally — the classic 'meeting of the minds'.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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