Contract Law

An important theory on whether a party has truly a contractual right and obligation is based on the concept of a “meeting of the minds.” The purpose of this article is to give you a brief flavor of how to use that to increase your odds of getting what you bargained for.

Since BiggerPockets is a real estate investing site we would be missing the boat if we failed to mention the “statute of frauds,” which – while very sinister sounding – – just means that contracts for real estate must be in writing to be enforceable (Note: other certain contracts fall into this rule as well).

Like real estate, there are a lot of nuances that are involved in whether you do or do not have a deal that can be legally enforced. The scope of this article is to talk about the theory behind the rest of the details. If you have a specific situation, your state law will be very important and the facts are very important. This is not intended as legal advice.

First the Definition:

Meeting of the Minds n. when two parties to an agreement (contract) both have the same understanding of the terms of the agreement. Such mutual comprehension is essential to a valid contract. It is provable by the express provisions of a written contract, without reference to any statements or hidden thoughts outside the writing. There would not be a meeting of the minds if Bill Buyer said, “I’ll buy all your stock,” and he meant shares in a corporation, and Sam Seller said, “I’ll sell all my stock to you,” and meant his cattle (For more information, see

The trick to this concept is the difference between what we think and …read more