What Is Tacit Agreement

Tacit agreement is a concept that is often used in the legal field and refers to an agreement or understanding that is implied from the circumstances. It is based on the idea that parties can reach an agreement without expressly stating the terms of the agreement or signing a contract.

In simpler terms, tacit agreement is an agreement that is not explicitly stated but is understood through actions or behavior. It can also be described as an unspoken agreement between parties, which can be inferred from their conduct or other factors.

For example, if you regularly purchase products from a particular vendor without negotiating the terms of your agreement, you are demonstrating tacit agreement. By continuing to purchase goods or services, you are implicitly agreeing to the vendor’s terms and conditions.

Tacit agreement can also arise in employment relationships. For instance, if an employee continues to work for a company after receiving an annual raise without negotiating or signing a new contract, they are agreeing to the terms of their employment through their actions.

In the legal context, tacit agreement can be used to establish that the parties had an understanding of their obligations and expectations. However, it can be difficult to prove the existence of a tacit agreement in court since it is based on implied or inferred intent rather than an explicit agreement.

Overall, tacit agreement is an essential concept in business and legal matters, as it allows parties to establish a mutual understanding without negotiating explicit terms. It is important to be aware of tacit agreements in your business dealings to avoid misunderstandings or disputes down the line.