well, in my opinion, it all depends on the contract. i am a female beginnig student and take community lessons, not private, but i am just saying what i would do. say i was your private dance instructor and i was interested in you. the contract involved states nothing about what happens outside of lessons and also says that there is not a problem with student/teacher conflicts or relationships. i would flirt a little more than needed, depending on the style of dance it might be hard to tell the difference though. i would also complement you on things that may not relate too much to lessons. if you are showing signs of interest back, i might just ask you out sometime. now, on the other hand- if the contract says that there are no student/teacher conflicts allowed, i would simply ignore my interest in you, or offer to try a more, shall i say intimate dance style, in which flirtation and touching is nessecary.