Implied Contract Law: Understanding the Basics
Contracts are an essential part of business dealings, and they help to ensure that all parties involved in a transaction are aware of their rights and obligations. However, not all contracts are written down, and sometimes they can be implied. Implied contracts are agreements that arise from the actions and behaviors of the parties involved. They can be just as binding as written contracts, and it`s important to understand the basics of implied contract law.
What is an Implied Contract?
An implied contract is a legally binding agreement that is not explicitly stated but is inferred from the actions and conduct of the parties involved. These contracts can be either express or implied. An express contract is one that is explicitly outlined and agreed upon by both parties, whereas an implied contract is not written down, but the terms are usually understood by the parties involved.
One of the most common types of implied contracts is an implied-in-fact contract. This type of contract arises from the actions and conduct of the parties involved in the transaction. For example, if a customer goes to a store and picks up a product, then proceeds to pay for it, there is an implied contract between the customer and the store that the product is being bought and sold at a specific price.
Another type of implied contract is an implied-at-law contract. This type of contract is also known as a quasi-contract, which is created by the law to avoid unjust enrichment. This means that when one party has received a benefit from another party, they are required to compensate that party, even if there was no agreement beforehand. For instance, if a plumber was called to fix a leak and the homeowner was not present at the time, the plumber could still bill the homeowner for the work done because it was implied that the homeowner would pay for the service when they requested it.
Enforceability of Implied Contracts
Just like written contracts, implied contracts are enforceable by law. If one party fails to perform their obligation under an implied contract, the other party can take legal action to enforce the contract`s terms. However, because implied contracts are not explicitly written down, it can be challenging to prove the terms and conditions of the agreement.
Proving the existence of an implied contract can be done by showing that the parties acted in a way that implied the existence of a contract, such as exchanging goods or services in exchange for money. Additionally, other evidence, such as email or text messages, can be used to prove the existence of an implied contract.
In conclusion, implied contract law is an essential aspect of the legal system. Implied contracts are binding agreements that are not explicitly written down, but the terms and conditions can be inferred from the parties` actions and behaviors. They can be just as enforceable as written contracts, and it`s important to understand the basics of implied contract law to ensure that you are protected in your business dealings.