IACCM Contract Management Forum

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2018-02-13 14:22:53

Default Contractual acceptance of a proposal

Is it standard practice to have a default in a contract that a proposal shall be deemed by the Parties to have been accepted if no acceptance or rejection is provided within an agreed timescale?
 •  IACCM  •   2018-02-13 15:46:25
Although there could be particular exceptions (according to special circumstances and depending on jurisdictions and/or on industries), the general rule is that an offer is an expression of willingness to contract on specified terms, made with the intention that it is to be binding ONCE ACCEPTED by the person to whom it is addressed. Then, the general rule is that there must be an objective manifestation of intent by the offeror to be bound by the offer if accepted by the other party. It will be interesting to see if in this forum we can get other responses regarding the chance of this default contractual provision.
 •   2018-06-21 10:16:03
We have a clause of this nature in our design and build contract - with regards to items of design that need additional clarification post contract. The onus is on the client to review and comment by a certain time, if not the supplier is entitled to assume acceptance (so they aren't held up in their works by our failure to reply). Interestingly the contract clause regards changes (as opposed to design development) is set up oppositely - if there is no response it falls away.
 •  Health Quest  •   2018-09-04 22:31:17
In my organization we have proposals that clearly state that terms are accepted upon complete execution of the proposal. In addition, when the proposal and/or Statement of Work is presented with a quotation, there is often a date by which the quotation will expire. This induces a more rapid response for signature and acceptance. Also keeps the lines from blurring as nothing is left to be construed as an assumption. The intent is clear to enter into an agreement.
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