An implied contract is an agreement between two parties that is not explicitly stated in writing or verbally but is inferred from the actions and conduct of the parties. It arises when the parties have a mutual understanding of the terms of the agreement, even though those terms are not explicitly stated. The four key elements of an implied contract are offer, acceptance, consideration, and mutuality of obligation.
What is an Implied Contract?
Implied contracts are agreements that are not expressly written down but are instead inferred from the conduct of the parties involved. They are legally binding just like written contracts.
Key Elements
For an implied contract to exist, the following elements must be present:
- Offer: One party must make an offer to the other party.
- Acceptance: The other party must accept the offer.
- Consideration: There must be something of value exchanged between the parties.
- Mutual intent to create a contract: Both parties must have the intention to be legally bound by the agreement.
Types of Implied Contracts
There are two main types of implied contracts:
- Implied-in-fact contracts: These contracts are created when the parties’ conduct shows that they intended to create a legally binding agreement, even though they did not expressly say so.
- Implied-in-law contracts: These contracts are created by law, regardless of the parties’ intent. They are typically imposed to prevent unjust enrichment or harm.
Examples
Here are some common examples of implied contracts:
- Hiring a contractor to perform repairs on your home.
- Purchasing goods or services from a store.
- Entering into a lease agreement for an apartment.
Table of Differences between Implied and Express Contracts
| Feature | Implied Contract | Express Contract |
|---|---|---|
| Formality | Not written | Written |
| Formation | Inferred from conduct | Stated explicitly |
| Legality | Legally binding | Legally binding |
| Evidence | Conduct, circumstances | Written document |
Question 1:
What constitutes an implied contract?
Answer:
An implied contract is a legally enforceable agreement that is created through the conduct of parties, rather than through written or spoken words. It is implied from the parties’ actions and circumstances.
Question 2:
How do implied contracts differ from express contracts?
Answer:
Implied contracts differ from express contracts in that express contracts are created through the explicit agreement of the parties, while implied contracts are inferred from the parties’ conduct. Implied contracts may be created through actions such as performance, acceptance of benefits, or acquiescence.
Question 3:
What are the typical elements that are necessary to establish an implied contract?
Answer:
To establish an implied contract, it is generally necessary to show that:
– There was an offer and acceptance of the offer, which can be implied from conduct without explicit communication.
– There was consideration, meaning that each party promised or performed something of value in exchange for the other party’s promise or performance.
– The parties had the capacity to enter into a contract.
– There was no valid defense to the contract, such as fraud, duress, or unconscionability.
Welp, there you have it, folks! I hope this little rundown on implied contracts has been helpful. Remember, these types of agreements can be tricky, so it’s always best to consult with a lawyer if you’re unsure about something. Thanks for hanging out with me today. Be sure to drop by again soon for more legal tidbits and general awesomeness!