Consensus ad idem
Consensus ad idem is a Latin term that means “agreement to the same thing” or “meeting of the minds”. In the context of contract law, it refers to the principle that for a contract to be legally binding, both parties must have a clear and mutual understanding of the essential terms and subject matter of the agreement.
The principle of consensus ad idem is a fundamental legal requirement for a valid contract. To be enforceable, a contract must be based on a genuine agreement between the parties, which includes offer, acceptance, consideration and capacity to enter into a contract. This means that both parties must have a clear understanding of what they are agreeing to, and there must be no ambiguity or misunderstanding about the terms of the contract. Without consensus ad idem, therefore, a contract may not be legally binding and enforceable.