What is the Definition of Tacit Agreement?

Tacit agreement, also known as implicit agreement, refers to an unspoken agreement between two or more parties. It is an agreement that is not formally expressed or written down, but rather is inferred from the behavior or actions of the parties involved.

In a tacit agreement, the parties involved may not have explicitly agreed to anything, but they have reached a mutual understanding through their actions or silence. It is often said that actions speak louder than words, and in the case of tacit agreements, this holds true.

A common example of tacit agreement is when two neighbors agree to share a driveway without ever discussing it. By parking their cars in a way that allows the other party to access their property, they are implicitly agreeing to share the space.

Another example is when a group of friends go out to dinner and split the bill evenly, even if someone had a more expensive meal. This is an unspoken agreement that everyone will pay an equal share, despite not discussing it beforehand.

In business, tacit agreements can also occur. For example, when two companies work together for a long period of time, they may develop an unspoken agreement on pricing or delivery times. While there may not be a formal contract, both parties understand what is expected of them and act accordingly.

However, it`s important to note that tacit agreements can lead to misunderstandings or conflicts if the parties don`t have the same understanding. It`s always best to communicate clearly and explicitly to avoid any confusion or disputes.

In conclusion, tacit agreement refers to an unspoken agreement between parties that is inferred from their actions or silence. While it can be beneficial in certain situations, it`s important to ensure that both parties have the same understanding to avoid any misunderstandings or conflicts.