Implied Contract

Definition

An Implied Contract is an agreement created by actions, conduct, or circumstances of the parties involved, rather than written or spoken words.

Purpose

Implied contracts ensure that parties fulfill their obligations and responsibilities even when no formal agreement exists. They are recognized by law based on the behavior and circumstances surrounding the relationship.

Examples of Use

• A customer receiving services at a restaurant implicitly agrees to pay for the meal.
• An employee working without a written contract but receiving regular pay implies an employment agreement.
• A patient receiving medical treatment at a hospital implies an agreement to pay for the services rendered.

Related Terms

• Express Contract: A contract in which the terms are stated clearly in words.
• Quasi-Contract: A legal substitute for a contract, created to impose equity between two parties.
• Binding Agreement: A contract or promise that is legally enforceable.

Notes

Implied contracts are enforceable by law, but proving their existence can sometimes be challenging, requiring evidence of the parties' conduct and circumstances.