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Conduct: Definition, Example and Related Terms

What is a Conduct ?

In the world of business, the term 'conduct' refers to the way a company or individual behaves, especially while carrying out their duties or responsibilities under a commercial contract. It's all about how one acts or performs in certain situations. In a commercial context, conduct can be both positive - such as fulfilling a contract on time and to the agreed standard - or negative, like violating the terms of a contract. The conduct of all parties involved in a contract is crucial to its success and can have significant legal implications if not managed correctly.


  • Scenario Description
    A company has a contract with a supplier to deliver goods every month. Positive conduct would be the supplier delivering the goods on time each month, promptly responding to any inquiries from the company, and behaving in a professional and respectful manner. Negative conduct would be the supplier delivering goods late, ignoring inquiries, or behaving unprofessionally or disrespectfully.
    A business hires a contractor to complete a project within a certain timeframe. Good conduct would be the contractor completing the project on time, communicating regularly with the business about progress, and adhering to all other stipulations in the contract. Poor conduct would be the contractor failing to complete the project on time, not communicating with the business, or violating any other terms of the contract.