ROUGH DRAFT
NAME- Shaurya Shukla B.A.L.L.B(hons.)
ROLL NO. 2160
SUBJECT- LAW OF CONTRACTS - I
TOPIC- CONSENSUS AD IDEM
INTRODUCTION
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.
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 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.
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.
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 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.
The concept of consensus ad idem has been a contentious one at times. Many people fail to read contracts
closely when they sign them, and do not understand the concepts they are signing their names to. These
individuals may argue that they did not fully understand the contract when it was signed, and cannot be held
liable for breaches. However, signing a contract is also assumed in the legal community to indicate that
someone read, understood, and renegotiated any unfavorable terms, so this defense may not be accepted.
People involved in transactions involving a contract should strive for a consensus ad idem to ensure they
understand what is expected of them while also learning about their legal rights in relation to the other parties
on the contract. If a contract is hard to understand, a lawyer can be asked for advice. People can ask to take
home copies of contracts for review and can request time to fully comprehend a contract before signing.
Coercive situations where people are encouraged to sign documentation without fully reviewing it may violate
the conditions for legality in some jurisdictions.
Aims and Objective
The researcher will try to find the importance of meeting of minds in a contract.
The researcher tends to draw a distinction in case of consensus ad idem in both English law and Indian
law .
The researcher will also elaborate about the free consent as defined in sec. 14 of Indian Contract Act
1872.
Hypothesis
A contract that is not entered by free consent is not a valid contract to be enforceable in a court of law so free
consent as defined in section 14 of Indian contract act, 1872 and is should not be vitiated by coercion , undue
influence , fraud , misrepresentation or mistake as defined under section 15,16,17,18 and 20 of Indian contract
act, 1872. There must be consensus ad idem i.e., meeting of minds between the parties . Both parties should
agree on same thing in same sense.
Research Methodology
In this project Doctrinal Method of Research is used. Doctrinal Methods refer to Library research, research or
processes done upon some texts writings or Documents, legal propositions and Doctrines, Articles, Books as
well as Online Research and Journals relating to the subject. This project is an intensive one so this method is
sufficient to address the findings and to arrive at concrete conclusions.
Tentative Chapterisation
Introduction
1. ROLE OF CONSENT IN FORMATION OF A VALID CONTRACT
2. FREE CONSENT
3. DIFFRENCE BETWEEN MISTAKE OF FACT AND MISTAKE OF LAW
4. VALUE OF CONSENT IN ENGLISH LAW
5. CONCLUSION
References
BOOKS-
Books
1. CONTRACT AND SPECIFIC RELIEF , AVATAR SINGH
2. THE INDIAN CONTRACT ACT,1872 POLLOCK AND MULLA
WEBSITES
www.indiankanoon.com
www.lawcorner.in
