CONTRACT LAW — Formation of Contract — Consensus Ad Idem — Meeting of the Minds Essential
Ratio Decidendi
Per Rhodes-Vivour, JSC, in Bilante Int'l Ltd v. NDIC (2011) NLC-123-177-1996(SC) at p. 21; Paras A—B:
"The overriding consideration in determining if there is a binding contract between the parties is to see whether there was a meeting of the minds between the parties, i.e. consensus ad idem. In all cases of contracts there must be consensus ad idem."
Explanation / Scope
This principle establishes that the overriding consideration in determining a binding contract is whether there was consensus ad idem, a meeting of the minds, which is essential in all contracts. The principle applies in contract formation. It ensures that contracts are based on mutual agreement. The principle reflects the requirement for consensus. It prevents enforcement without mutual assent. The court must find consensus. The principle provides guidance on formation of contract.