What term describes the agreement between parties in a contract?

The term that describes the agreement between parties in a contract is Mutual Assent. This concept is fundamental in contract law, as it signifies that both parties involved in the contract have consented to the terms and conditions laid out, demonstrating a meeting of the minds.

Mutual Assent typically manifests through an offer by one party and acceptance by another, which may be explicit or implied. This mutual agreement establishes the foundation for a legally binding contract, ensuring that both parties understand and agree to their obligations.

On the other hand, while Capacity refers to the legal ability of parties to enter into a contract, Consideration pertains to the value or benefit that is exchanged between the parties, and Performance relates to the execution of the contract terms. Each of these elements plays a critical role in a contract, but they do not specifically define the agreement between the parties themselves, as Mutual Assent does. Thus, Mutual Assent is the correct term that encapsulates the notion of agreement in contract law.