In the world of business law, implied contracts are a common occurrence. These contracts are agreements between two parties that are not explicitly stated, but rather inferred from the actions or conduct of the parties involved. Understanding the implications of an implied contract is essential for anyone involved in business.
An implied contract is established when the parties involved do not sign a formal agreement, but their actions or conduct suggest that they have agreed to certain terms. For example, when a company hires an employee, there is an implied contract that the company will provide compensation in exchange for the employee`s work. This contract is not explicitly stated, but rather implied from the actions of both parties.
There are two types of implied contracts: implied-in-fact and implied-at-law. Implied-in-fact contracts are inferred from the conduct of the parties involved. They are based on the circumstances of the situation and the behavior of the parties. For example, if a customer enters a store and picks up a product, there is an implied contract that the customer will pay for the product.
Implied-at-law contracts, on the other hand, are not based on the behavior of the parties involved but rather on the law. These contracts are also known as quasi-contracts. They are created by the courts to prevent unjust enrichment. For example, if a contractor performs work on a property based on a verbal agreement with the owner, but the owner later refuses to pay, the contractor may be able to recover payment through an implied-at-law contract.
It is important to note that implied contracts are just as legally binding as written contracts. The terms of the contract must be clear and unambiguous, and both parties must agree to the terms. In cases where disputes arise, it can be challenging to determine the terms of an implied contract, which is why it is always recommended to have written contracts whenever possible.
In conclusion, an implied contract is a legally binding agreement between two parties that is inferred from their actions or conduct. There are two types of implied contracts: implied-in-fact and implied-at-law. It is important to understand the implications of these contracts in business law to ensure that all parties are aware of their obligations and responsibilities. Always seek legal advice when dealing with any contract, implied or otherwise, to protect your rights and interests.