Legal Definition of an Implied Contract

The legal definition of an implied contract is an agreement between two parties that is not expressed in writing but is inferred from the actions and conduct of the parties involved. Implied contracts can be formed in a variety of circumstances, such as when one party performs services for another party with the expectation of compensation, or when goods are delivered without a formal agreement for payment.

Implied contracts can be categorized into two types: implied-in-fact and implied-at-law. Implied-in-fact contracts are those that are formed based on the parties` conduct and actions, while implied-at-law contracts, also known as quasi-contracts, are created by law to prevent one party from being unjustly enriched at the expense of another party.

To establish an implied-in-fact contract, the following elements must be present: a mutual intent to enter into a contract, an offer to perform a service or provide goods, and acceptance of the offer by the other party. The parties must also have a clear understanding of the terms and conditions of the contract, including the compensation to be paid, the duration of the agreement, and any other relevant details.

In contrast, implied-at-law contracts are created by the court based on the principle of unjust enrichment. This occurs when one party benefits from the actions of another party without providing compensation. For example, if a contractor performs work on a property without a formal agreement with the owner, but the work improves the property`s value, the contractor may have a claim for payment based on the principle of unjust enrichment.

It`s essential to note that implied contracts can be as legally binding as written contracts. However, it can be more challenging to prove the terms of an implied contract because there is no written agreement. As a result, it`s important to establish a clear understanding of the terms of any agreement, whether written or implied, to avoid any misunderstandings or disputes down the line.

In conclusion, the legal definition of an implied contract is an agreement between two parties that is inferred from their actions and conduct. Implied contracts can be created in various circumstances, and it`s essential to have a clear understanding of the terms and conditions involved to avoid disputes. As with any legal matter, it`s always advised to consult with an attorney to ensure compliance with all applicable laws and regulations.