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Passive Agreement Define: Understanding the concept of passive agreement

Passive agreement is a term used in the legal and business sectors to describe an agreement that is implied or presumed, rather than being explicitly stated. This type of agreement is often characterized by actions that indicate agreement, rather than direct communication.

To illustrate this concept, let`s consider an example. Suppose that a company hires a new employee and provides them with a handbook that outlines the company`s policies and procedures. The employee reviews the handbook, and then begins to follow the policies and procedures outlined within it. In this scenario, the employee`s actions (i.e., following the policies) indicate that they have agreed to be bound by the terms of the handbook, even though they never explicitly agreed to do so.

Passive agreements can also arise in other contexts. For instance, a person who continues to engage in a business relationship with a supplier, even though they are dissatisfied with the supplier`s performance, may be seen as passively agreeing to continue the relationship.

It is important to note that, in some cases, passive agreements may not be legally enforceable. This is because they are based on assumptions or implied intentions, rather than clear and explicit communication. As such, it is always advisable to ensure that agreements are explicitly stated and clearly understood by all parties involved.

In conclusion, passive agreement is an important concept to understand in the legal and business fields. It is characterized by actions that indicate agreement, rather than direct communication, and can arise in a variety of contexts. While passive agreements may not always be legally enforceable, they can still be an important tool for establishing expectations and norms within a given relationship.