Affirmation of contract

Affirmation of contract,

Definition of Affirmation of contract:

  1. Action (or a failure to take action) performed with full knowledge of the facts, that establishes a contract as valid. For example, a buyer of goods affirms a purchase price by proceeding to resell them, or the seller of goods affirms a price by not taking any action when the buyer pays a certain sum in settlement of the invoice.

  2. Continuation of a voidable contract by a contracting party instead of rescinding it (because of the other partys misrepresentation or other reason) or considering it discharged (because of the other partys breach of contract or other reason), with full knowledge of the facts. Such affirmation may be effected through an express declaration by a party to proceed with the contract, or it may be inferred from that partys conduct.

Meaning of Affirmation of contract & Affirmation of contract Definition