Legal Definition of a Contract Implied in Fact

Legal Definition of a Contract Implied in Fact

Contracts are agreements between two or more parties that are legally binding. In some cases, contracts are written agreements that are signed by both parties, while in other cases, they are oral agreements. However, there are times when the existence of a contract is not clear-cut, and this is where the concept of “implied in fact” contracts comes in.

Implied in fact contracts are those that are not written or expressly stated but are inferred from the conduct of the parties involved. These contracts are based on the actions or conduct of the parties, which imply that there is an agreement in place.

The legal definition of an implied in fact contract is a contract that is not created through written or oral communication but is instead inferred from the conduct of the parties involved. This type of contract is called “implied” because the promises and obligations are not explicitly stated but are instead implied from the conduct of the parties.

For example, imagine a person goes to a mechanic to have their car repaired. The mechanic fixes the car and presents the person with a bill for the services rendered. If the person pays the bill, an implied in fact contract is created. The act of paying for the services implies that the person accepted the mechanic`s offer to repair the car and agreed to pay the stated price.

Another example of an implied in fact contract is when a person hires someone to perform a service that is commonly associated with payment. For instance, if a person hires a gardener to regularly mow their lawn and pays them for their services, an implied in fact contract is created even if no formal written or oral agreement was made.

The key to an implied in fact contract is that the parties` actions and conduct must be sufficient to imply the existence of a contract. The circumstances surrounding the parties` conduct must be such that a reasonable person would infer that there was an intention to create a contract.

Implied in fact contracts are enforceable in court just like express contracts, and the same principles of contract law apply. This means that the parties are bound by the terms of the implied contract, and if one of the parties fails to fulfill their obligation, the other party can seek legal remedies.

In conclusion, an implied in fact contract is a legally binding agreement that is inferred from the parties` conduct rather than expressed in writing or orally. The parties` actions must be sufficient to imply the existence of a contract, and the terms must be clear enough to be enforceable. If you believe you have entered into an implied in fact contract and need legal assistance, it`s essential to consult an experienced attorney.