Contracts

Which of the following best describes 'mutual consent' (meeting of the minds) in contract formation?

ABoth parties must sign the contract in the presence of a notary
BBoth parties must agree to the same material terms — offer and acceptance must be mirror images✓ Correct
CThe broker must approve the final agreement before it is binding
DBoth parties must use a California-approved standard form

Explanation

Mutual consent (meeting of the minds) requires that the offer and acceptance agree on all material terms. If the acceptance changes any material term, it is a counteroffer, not an acceptance, and no contract is formed.

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