Acceptance by conduct CASES

In English law, acceptance by conduct occurs when a party demonstrates agreement to contract terms not through explicit words or signatures, but by actions that align with the proposed offer.

Definition and Principles

Acceptance by conduct arises when one party performs in accordance with a draft or proposed arrangement—such as delivering goods or making payments—demonstrating they intend to be bound, even without formal acceptance.

Case Example: Brogden v Metropolitan Railway Company (1877)

Brogden had supplied coal informally to the Metropolitan Railway Company for years. A draft contract was sent and amended by Brogden, and though the railway company neither signed nor verbally accepted it, both parties acted in line with its terms. The House of Lords held that their conduct — continuing supply and payment under those terms — constituted valid acceptance of the contract.

Why It Matters

This principle recognises the practical realities of commerce: contracts may be formed and enforced based on parties’ clear conduct reflecting agreement, even in absence of formal execution. It promotes commercial flexibility and efficiency.

Limitations and Cautions

Acceptance by conduct must be clear and unequivocal. Mere mental assent or silence does not amount to acceptance. The conduct must objectively demonstrate intention to accept the offer, and parties must be aware of the proposed terms.

You may also like our more detailed guide on acceptance by conduct.