Implied Contract is Also Known As: Understanding the Basics

Implied contract is a legal term that refers to an agreement between two parties that is not explicitly stated in writing or verbally. Instead, it is inferred from the actions, conduct, and circumstances of the parties involved. This type of contract is also known as a quasi-contract or constructive contract. In this article, we will delve deeper into the concept of implied contract and its various types.

What is an Implied Contract?

An implied contract is a legally binding agreement between two parties that is formed based on their conduct and the surrounding circumstances. The terms of the contract are not explicitly stated, but they are presumed to be understood by the parties involved. Implied contracts can arise in various situations, from buying a product from a store to hiring someone for a job.

Types of Implied Contracts

There are two types of implied contracts: implied-in-fact contracts and implied-at-law contracts.

Implied-in-fact contracts are formed by the conduct of the parties involved. They arise when the actions of the parties indicate an agreement. For example, if you go to a store and pick up an item and take it to the checkout counter, you have entered into an implied-in-fact contract to purchase the item at the stated price.

On the other hand, implied-at-law contracts are not based on the actions or agreements of the parties involved. They are created by the law itself to prevent unjust enrichment. For example, if someone provides you with a service and you accept it, you are under an implied-at-law contract to pay for that service.

Benefits of Implied Contracts

Implied contracts are beneficial in many ways. They are often used in situations where a written contract is not necessary but an agreement needs to be established. Implied contracts can provide clarity and certainty regarding the terms of the agreement, which can be beneficial in situations where verbal agreements may not be clear or may be subject to misinterpretation.

Furthermore, implied contracts can provide a level of protection for both parties. They can help to prevent misunderstandings and disputes by setting clear expectations regarding the terms of the agreement. Additionally, implied contracts can help to establish trust between the parties involved.

Conclusion

In conclusion, implied contract is a legal concept that refers to an agreement between two parties that is not explicitly stated in writing or verbally. It can arise in various situations, from buying a product from a store to hiring someone for a job. There are two types of implied contracts: implied-in-fact contracts and implied-at-law contracts. Implied contracts are beneficial in many ways, including providing clarity and certainty regarding the terms of the agreement and establishing trust between the parties involved. Understanding the basics of implied contract is essential for anyone involved in business or legal matters.