Implied (Contract) Agreement
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An Implied (Contract) Agreement is a legally binding agreement that is inferred from the actions, conduct, or circumstances of the parties involved, rather than from explicit written or verbal statements.
- Context :
- It can be formed through the behavior and conduct of parties, indicating a mutual intent to enter into an agreement.
- It can be classified into two main types: implied-in-fact contracts and implied-in-law contracts (a.k.a quasi-contracts).
- It can have the same legal force as an express contract, despite the lack of formal documentation.
- It can arise in various situations, such as in service industries, employment relationships, and business partnerships.
- It can be enforced by courts to prevent unjust enrichment of one party at the expense of another.
- It can require elements such as mutual agreement, legal obligation, and consideration to be legally binding.
- It can be more challenging to prove in court compared to express contracts due to the absence of written documentation.
- It can be enforceable in the same manner as express contracts, though proving their existence may require demonstrating the circumstances and conduct that imply the agreement.
- ...
- Example(s):
- Service Agreements such as:
- Restaurant dining, where ordering and consuming a meal implies an agreement to pay for the service.
- Haircut service, where sitting in a barber's chair and receiving a haircut implies an agreement to pay for the service.
- Emergency Medical Treatment, where unconscious patients receiving care implies an agreement to pay for the services provided.
- Implied Warranty,
- ...
- Service Agreements such as:
- Counter-Example(s):
- An Express Contract, which involves explicit written or verbal agreements between parties.
- A Void Contract, which lacks legal enforceability due to failure in meeting essential contract elements.
- A Quasi-Contract, imposed by law to prevent unjust enrichment, even in the absence of any agreement between the parties.
- See: Implied Contractual Term, Quantum Meruit, Unilateral contract, Bilateral contract, Verbal Contract, Tacit Agreement, Unjust Enrichment.
References
2024a
- (ChatGPT-OpenAI, 2024) ⇒ Prompt: Summarize the concept Implied Contract in 1- 2 paragraphs. ChatGPT (model:gpt-4o). Retrieved: 2024-12-29.
- QUOTE: An implied contract is a legally binding agreement that is not put to paper or explicitly stated, but is instead formed by the actions, behavior, or circumstances of the parties involved. Unlike an express contract, where the terms are clearly articulated by the involved parties, an implied contract emerges from the situation and the conduct of the individuals or entities interacting under the presumption that an agreement exists. This can occur when one party knowingly provides goods or services that are accepted or utilized by another party, who similarly understands the implicit obligation to compensate or adhere to certain terms based on the expectation of mutual benefit or fairness.
There are two main types of implied contracts: implied-in-fact and implied-in-law (also known as quasi-contracts). An implied-in-fact contract is recognized when the circumstances and conduct of the parties suggest that an agreement was indeed intended, with each party expecting to receive something in return for their contribution. On the other hand, an implied-in-law contract is a legal fiction imposed by a court to prevent unjust enrichment, even if there was no actual agreement or meeting of the minds. This ensures fairness and justice between parties who have benefited at the[expense of another. In either case, the enforceability of implied contracts hinges on the reasonable expectations and reliance of the involved parties, inferred from their interactions rather than written or spoken terms.
- QUOTE: An implied contract is a legally binding agreement that is not put to paper or explicitly stated, but is instead formed by the actions, behavior, or circumstances of the parties involved. Unlike an express contract, where the terms are clearly articulated by the involved parties, an implied contract emerges from the situation and the conduct of the individuals or entities interacting under the presumption that an agreement exists. This can occur when one party knowingly provides goods or services that are accepted or utilized by another party, who similarly understands the implicit obligation to compensate or adhere to certain terms based on the expectation of mutual benefit or fairness.
2024b
- (Kenton, 2024) ⇒ Will Kenton. (2024). "Implied Contract: Definition, Example, Types, and Rules". In: Investopedia.
- QUOTE: An implied contract is a legally binding obligation that derives from the actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or more parties. The implied contract, on the other hand, is assumed to exist, but no written or verbal confirmation is necessary.
2024c
- (CFI Team, 2024) ⇒ CFI Team (2024). "Implied Contract" . In Corporate Finance Institute (CFI).
- QUOTE: A non-verbal and unwritten – yet still legally binding – contract that exists based on the behavior of the parties involved or on a set of circumstances.
2023a
- (Asheychik, 2023) ⇒ Olga Asheychik (2023). "Your complete guide to implied contracts". In: PandaDoc Blog.
- QUOTE: ... Unlike an express contract, which is explicitly stated either verbally or in writing and has clear terms and conditions, an implied contract arises from the conduct and actions of the parties involved.
2023b
- (Heck, 2023) ⇒ Sean Heck (2023). "Implied Contracts: A Guide to the Unspoken Agreements in Business". In: Cobblestone Software Blog.
- QUOTE: An implied contract, unlike its express counterpart, doesn’t require written or spoken words to come into existence. It’s like a silent agreement, where actions and circumstances do the talking. So, what exactly is this silent communicator in the business world? Let's break it down.
2023c
- (Saravanakuma) ⇒ Nanditha Saravanakuma (2023). "Implied Contract". In: WallStreetMojo.
- QUOTE: An implied contract refers to a legally binding agreement between multiple parties that are formed through their actions and behavior. There is no written basis or verbal confirmation for such contracts, yet they are legally valid. The purpose is to ensure that both parties get something out of the transaction.
2023d
- (Thomas, 2023) ⇒ Ben Thomas (2023). "What is an Implied Contract, and Is It Legally Binding?". In: Concord App Blog.
2022a
- (Wex Definitions Team, 2022) ⇒ Wex Definitions Team. (2022). "implied contract". In: Legal Information Institute, Cornell Law School.
2022b
- (UpCounsel, 2022) ⇒ UpCounsel Team (20222). "What Is the Difference Between Implied and Express Contract?". In: UpCounsel.
- QUOTE: While an implied contract can be entered into without the intent of one of the parties to complete a particular task or even enter into a contract, the law basically does not care about the party’s intent if the actions implied the existence of a contract. Thus, the obligation to perform the job still exists. This is also known as implied by law.