An implied contract is a legal agreement that is not explicitly stated or written down but is inferred from the actions or behavior of the parties involved. It is also known as an implied-in-fact contract because it is based on the parties` conduct rather than a written agreement.
Implied contracts can arise in different situations, such as in employment, where an employee`s continued performance can indicate an agreement with the employer about job duties and compensation. Another example is when a customer returns to a particular store to purchase goods or services, creating a mutual understanding between the customer and the business owner.
In the absence of a written agreement, the terms of an implied contract can be difficult to discern, and this can lead to disputes between the parties involved. Thus, it is important to have a clear understanding of the elements that can help establish an implied contract.
One of the crucial elements of an implied contract is mutual assent, which means that both parties have to understand and agree to the terms of the contract. This can be inferred from the actions and behavior of the parties, such as when a customer makes a purchase and accepts the goods or services in exchange for payment.
Another important element is the presence of consideration, which means that each party must exchange something of value, like money or services. For instance, in an implied employment contract, the employee provides work or services to the employer in exchange for compensation.
Finally, the terms of the contract must be reasonable and lawful. Any terms that are unfair or illegal are not enforceable, even if they are part of an implied contract.
In conclusion, an implied contract is a legal agreement that is inferred from the actions or behavior of the parties involved. It is a binding contract that requires mutual assent, consideration, and lawful and reasonable terms. As a professional, it is important to understand what an implied contract means and to be able to communicate this information in clear and concise language to readers.