Step 1: Understanding the Meaning of Consensus ad-idem:
The phrase “consensus ad-idem” is a Latin term which means “meeting of minds.” It is one of the most fundamental principles of contract law. For a valid contract to exist, both parties must agree on the same thing in the same sense.
Step 2: Application in Contract Formation:
According to Section 13 of the Indian Contract Act, consent is said to be free when two or more persons agree upon the same thing in the same sense. Without such mutual understanding, a valid contract cannot exist. For instance, if one party intends to buy a specific item while the other party refers to a different one, there is no consensus ad-idem and thus, no valid agreement.
Step 3: Final Conclusion:
Hence, the correct answer is (C) Meeting of minds upon the same thing in the same sense, as it captures the essence of mutual consent in contract formation.