Simple Contracts

Question 6 • 26-27 Ignite Technical Math-Financial Math - MA2007

In forming a contract, the “meeting of the minds” is _____.

Answer

an agreement between all parties involved in the contract of the details of the contract.

a formal meeting of the parties involved in a contract that may or may not result in a signed agreement.

a phrase used to describe a verbal contract or a contract made without signatures from the parties involved.

a mental exercise used by a person involved in a contract to try to guess the contract requests of the other parties and offer a compromise.

Explanation

A “meeting of the minds” means that all parties agree on the important terms of the contract. It describes agreement about the contract’s details, not necessarily a formal meeting or an unsigned verbal agreement. Therefore, the correct choice is “an agreement between all parties involved in the contract of the details of the contract.”

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