This paper presents the outline of a theoretical perspective in terms of which it should be possible to discuss the manner in which two or more human minds can interact through the medium of language. It presents an overall schematic diagram of the "communicative situation" within which such events take place. It takes, as its normative point of departure, the dyadic relationship between a single speaker and hearer in face-to-face dialog and treats all other situations as derivative from this, requiring allowances to be made for perceived differences. "Meaning" is discussed as an activity engaged in by the speaker rather than as an inherent property of the medium used for communication. Similarly, "understanding" is the fundamental activity of the hearer in which he attempts to understand the speaker's intended message behind the utterance rather than some meaning in the utterance. The conditions necessary for a consideration of these activities are presented. It is generally argued that language production yields extended discourse so that the usual focus on word or sentence "meanings' is both insufficient and misguided. It is only by focusing on the mental activities of speakers and hearers that we will develop a substantive theory of both meaning and understanding.