Contracts

In Iowa, the term 'meeting of the minds' in contract law means:

ABoth parties must be of above-average intelligence
BBoth parties must genuinely agree to the same terms of the contract✓ Correct
CThe parties must meet in person to sign the contract
DThe real estate agent must understand the terms before the parties sign

Explanation

A 'meeting of the minds' (also called mutual assent) means that both parties genuinely agree to the same terms. Without this genuine mutual agreement, there is no contract. Misrepresentation, fraud, or mistake can prevent a true meeting of the minds.

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