affirmation of contract

Definitions (2)
Popular Terms
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 party's misrepresentation or other reason) or considering it discharged (because of the other party's 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 party's conduct.


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