What Is Acceptance by Conduct in Contract Law

When it comes to contract law, it`s important to understand how agreements are formed. One concept that comes up often is acceptance by conduct. In simple terms, this means that a contract can be created if both parties behave as though there is an agreement in place, even if there was no explicit offer or acceptance made.

Acceptance by conduct is also known as implied acceptance or implied-in-fact contract. It`s based on the principle that actions speak louder than words. Essentially, if both parties act in a way that implies they have agreed to something, then a contract can be considered to exist.

For example, imagine a builder has been hired to construct a new house. They begin work and the homeowner does not explicitly sign a contract. However, they continue to make payments for the work, provide materials to the builders, and communicate regularly about the project. In this scenario, it could be argued that acceptance by conduct has occurred, and a contract has been formed.

Another common example of acceptance by conduct is seen in online purchases. When you buy something online, you often have to click a button that says “I agree to the terms and conditions.” This counts as an offer from the retailer, and by clicking the button, you are accepting that offer. This is a clear example of acceptance by conduct.

It`s worth noting that acceptance by conduct can complicate things if there is a dispute about the terms of the agreement. If there wasn`t an explicit offer or acceptance made, then it can be difficult to establish exactly what the terms of the contract were. This is why it`s important to have clear, written contracts in place whenever possible.

In conclusion, acceptance by conduct is a concept in contract law where a contract can be formed if both parties act as though there is an agreement in place, even if no explicit offer or acceptance was made. It`s important to be aware of this principle, but also to have written contracts in place to avoid any confusion or disputes.

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