Consensus ad idem
The Latin term consensus ad idem, an “agreement of the minds,” is used to describe a situation where people fully understand a contract and their role in it. Consensus or agreement on a contract is considered a necessary condition of a valid contract in many legal systems, under the argument that people who are not aware of or do not understand a contract cannot be held responsible for it. In a written contract, the presence of clauses spelling out the specifics of the .contract is used to show that a consensus ad idem was reached during the development of the contract, as anyone who signs the contract should have read and understood the terms.
It is an agreement between all the people or groups who make a contract on what they understand the contract to be about. This is the first principle that’s the foundation of enforceable contracts because for contracts to be enforceable, agreement or a meeting of the minds of all involved parties, is required.
When people develop a contract, an offer is extended and accepted, and the terms of the offer are worked out. This is the stage where the consensus ad-idem comes in, as the parties to the contract discuss the specifics and the details, and focus on developing a contract all are satisfied with. The contract must include adequate consideration, something of value exchanged by all parties, and the capacity for consent must be demonstrated. The final qualification needed for legality is the legality of the contract itself; the other conditions may be satisfied, but if the contract is for something illegal, it cannot stand up in court.