Written by attorneys · grounded in primary & secondary sources — see below
A phrase used in statutes, restatements, and judicial opinions to indicate that no party to an agreement or proceeding possesses particular knowledge or takes a specified action.
Sources & Authorities· 9 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Federal Rules
Uniform Acts
How it applies
Common Examples
6
Ex Parte Scheduling Call
Judge Harlan received an emergency call from counsel for Neville Norton about resetting a hearing date due to a sudden medical issue. Harlan confirmed that the change would not affect any substantive rights and promptly notified counsel for Nathan Nguyen of the conversation. The court allowed the rescheduling because Harlan reasonably believed neither party would gain a procedural or tactical advantage from the communication.
Divergent Understandings of Scope
Nexus Technologies and Northstar Logistics signed a services agreement that used the term 'full support.' Internal records showed Nexus meant round-the-clock monitoring while Northstar meant business-hours assistance. Because neither party knew or had reason to know the meaning the other attached, the court found no mutual assent on that material term.
Nestor Navarro asked Norman Nash to negotiate a lease on his behalf without any promise of payment. Nash agreed and began contacting landlords using Navarro's authority. The relationship of principal and agent was created even though neither party received consideration for the arrangement.
Trade Usage in Supply Contract
Nobel Dynamics contracted with Norton Bank to supply specialized parts. Both parties knew the relevant industry usage governing delivery tolerances, and neither party knew or had reason to know that the other attached an inconsistent meaning. The court therefore interpreted the agreement in accordance with that usage.
Customary Payment Terms
Natasha Nielsen agreed to purchase equipment from Noreen Nguyen under a written contract silent on installment timing. Both parties knew the standard trade usage requiring payment within thirty days of delivery, and neither party knew or had reason to know the other intended inconsistent terms. The agreement was therefore supplemented by that usage.
State Law Immunity Question
In a diversity action, the plaintiff offered proof on whether the defendant cooperative's own crews had performed certain work. The court accepted the parties' shared interpretation of the state immunity statute because neither party disputed that reading of local law.
Byrd v. Blue Ridge Rural Electrical Cooperative, Inc.356 U.S. 525, 537–38 (1958)
Common questions
Frequently Asked
3
What does a 'neither party' docket entry accomplish?+
It records the parties' mutual decision to stop prosecuting and defending the case. The entry functions as a dismissal without further court action.
Does lack of consideration prevent an agency relationship?+
No. The relation of principal and agent can be created although neither party receives consideration.
When does a misunderstanding prevent contract formation under the Restatement?+
There is no manifestation of mutual assent if the parties attach materially different meanings and neither party knows or has reason to know the meaning attached by the other.
5 U.S. (1 Cranch) 137 (1803)Property
…the President; if he neglects or refuses to perform them he may be compelled by mandamus like other officers. The President is no party to this case. The Secretary is called upon to perform a duty over which the President has no control and for the neglect of which he is in no manner responsible. The Secretary alone is the…