Meeting of the Minds

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• basic rule of contract law is that the parties to a contract must agree to its terms
  • to determine a contract, courts look for mutual agreement
  • look for evidence that both parties acted as if they had entered into a contract
• contracts form when there is a meeting of the minds
  • long-standing feature of American law
  • Baltimore & Ohio Railroad Co. v. United States (1923)
    • Supreme Court held that a contract can be inferred from the conduct of the parties
    • true even if no written contract exists
  • evidenced through words or actions