What describes the agreement between parties involved in a contract?

The concept of mutual assent is pivotal in contract law as it refers to the agreement between the parties involved to enter into a contract. This is fundamentally based on the idea that both parties have a shared understanding and acceptance of the terms of the contract. Mutual assent typically manifests through the processes of offer and acceptance—one party makes an offer, and the other party accepts it, clearly indicating that they agree to the outlined terms.

This agreement is essential for the validity of a contract, as it ensures that all parties are on the same page regarding their rights and responsibilities. Without mutual assent, a contract may lack enforceability because it would indicate that at least one party did not genuinely agree to the terms.

In contrast, the other options, while related to contracts, do not specifically describe the agreement between the parties as clearly. Good faith pertains to the expectations of honesty and fair dealing in forming a contract but does not directly address the agreement component. Contractual obligation refers to the duties that arise from a contract after it has been formed, rather than the initial agreement itself. Performance involves carrying out the terms of the contract once it is in effect, which occurs after mutual assent has already been established. Thus, mutual assent stands out as the key element that defines