In contract law, what does "mutual assent" signify?

Mutual assent is a foundational concept in contract law that refers to the agreement of both parties to the terms of a contract. This mutual agreement is often established through an offer made by one party and acceptance by another. In order for a contract to be legally binding, there must be clear communication that both parties understand and accept the terms defined in the agreement. This ensures that all parties involved are on the same page regarding their rights and obligations under the contract.

Unlike the other options, which either limit the scope of agreement to one party or suggest invalidity, the essence of mutual assent emphasizes the necessity for both parties to agree. It creates a meeting of the minds, which is essential for any enforceable contract. Thus, mutual assent is vital for establishing the legitimacy and enforceability of contractual relationships.