Consensus Ad Idem CASES
In English law, consensus ad idem (“meeting of the minds”) refers to the mutual understanding and agreement between parties regarding essential contract terms, forming the foundation of a valid contract.
Definition and Principles
Consensus ad idem requires parties to have a clear, shared understanding of contract terms and obligations. Without genuine agreement, no enforceable contract exists.
Common Issues
- Misunderstanding or ambiguity about terms can prevent true consensus.
- Mistakes or misrepresentations can undermine genuine agreement.
Practical Implications
Parties should ensure clarity and transparency in negotiations, clearly documenting agreed terms to demonstrate genuine consensus, avoiding disputes over interpretation.
Importance
Consensus ad idem ensures fairness and certainty in contracts, protecting parties from unintended obligations and fostering trust in contractual relationships.
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An agreement was made for cotton arriving on the ship 'Peerless' from Bombay. Unknown to the parties, two ships of that name sailed from Bombay months apart. The court held that as the parties meant different ships, there was no consensus, and therefore no binding contract. Facts The claimant, Raffles, agreed to sell 125 bales of Surat cotton to the defendants, Wichelhaus & Anor. The written agreement specified that the cotton was ‘to arrive ex “Peerless” from Bombay’. However, there were two ships named ‘Peerless’ sailing from Bombay: one which sailed in October and another which sailed in December. The
A rogue, Blenkarn, impersonated a reputable firm to fraudulently obtain handkerchiefs from Lindsay & Co. He then sold them to an innocent third party, Cundy. The House of Lords held that no contract ever existed between Lindsay and the rogue, meaning title never passed. Facts The case concerned a quantity of linen handkerchiefs ordered from the respondents, Lindsay & Co., who were manufacturers in Belfast. The order came from a fraudulent individual named Alfred Blenkarn, who was operating from a room he had rented at 37 Wood Street, Cheapside. Blenkarn intentionally signed his correspondence in a manner that made his
