Contracts

What is 'mutual assent' (meeting of the minds) and why is it essential in a Pennsylvania real estate contract?

ABoth parties must consult with attorneys before the contract is binding
BBoth parties must genuinely agree to the same terms — offer, acceptance, and identical understanding of material terms — for a binding contract to exist✓ Correct
CMutual assent requires both parties to sign the contract at the same time and place
DIt refers to the requirement for witness signatures on Pennsylvania real estate deeds

Explanation

Mutual assent (meeting of the minds) means both parties have genuinely agreed to the same material terms — price, property, closing date, contingencies. A contract cannot exist if parties have fundamentally different understandings of key terms. In Pennsylvania real estate, a counteroffer destroys the original offer, requiring a new acceptance. Courts examine whether objective evidence (words, conduct) demonstrates genuine agreement. Mistakes about material facts can prevent mutual assent and render a contract voidable.

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