Mutual Assent

What Does Mutual Assent Mean?

Mutual assent occurs when two parties agree on the basic terms of a contract before signing it. It is one of the initial steps in finalizing an insurance contract.

Insuranceopedia Explains Mutual Assent

If mutual assent is achieved, there is a strong likelihood that the contract will proceed. However, mutual assent does not guarantee the contract’s finalization. One party may change their mind before signing, or the assent could be withdrawn if it is discovered that one party misrepresented certain facts or if new information emerges.