in contract law, when we say that the parties have reached a “mutual agreement” or there is “mutual consent”, we refer to the fact that the parties have reached an understanding that may be the basis of an oral or written contract. a unilateral agreement is a type of agreement that is one-sided or the legal obligations are imposed on one party as opposed to all parties. in contract law, a mutual agreement refers to an understanding or agreement between two or more parties to be legally bound to do or not do something. a joint venture agreement or a mutual cooperation agreement is the agreement between business entities where the objective is to reach a mutually desired outcome.