When does vendor acceptance occur in a contract or order?

Vendor acceptance in a contract or order occurs when the vendor starts performing. This action indicates that the vendor has acknowledged and agreed to the terms of the contract by beginning the work or delivering the goods specified in the agreement. Performance signifies acceptance because it demonstrates the vendor's commitment to fulfill their obligations under the contract.

This understanding is grounded in contract law principles, where acceptance is not merely about acknowledgment of receipt or signing the document—it is about acknowledging the terms and undertaking to execute them. Thus, when the vendor starts performing, they effectively indicate their acceptance of the contract conditions and initiate the contractual relationship.

Other options may appear relevant, but they do not represent the true point of acceptance. Merely receiving the contract does not constitute acceptance; without action, the vendor has not yet agreed to the contract terms. Similarly, the government signing the contract indicates approval but does not capture the vendor's acceptance. Lastly, the time of bid submission is only an expression of interest and does not equate to a binding agreement or acceptance of the terms. Therefore, the act of starting performance is the correct and definitive marker of vendor acceptance in a contractual context.