Can a contract be formed through conduct rather than a signature?

Contracts & Business Law

Yes. Section 505 expressly recognizes that a contract can arise through the conduct of the parties, subject to any mandatory formality required by law.[1]

Example

A supplier delivers goods after receiving an order and the buyer accepts and pays for them. Depending on the facts, the parties' conduct can demonstrate a contractual relationship even without a single signed document.

Important qualification

Conduct cannot bypass a statutory requirement that a particular transaction must be completed in a prescribed form.

Sources

  1. Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source
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