Definition of Implied contract:
An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or more parties. The implied contract, on the other hand, is assumed to exist, but no written or verbal confirmation is necessary.
The principles underlying an implied contract are that no person should receive unjust benefits at the expense of another person, and a written or verbal agreement is not needed to get fair play. For example, the implied warranty is a type of implied contract. When a product is purchased, it must be capable of fulfilling its function. A new refrigerator must keep food cool, or either the manufacturer or the seller has failed to meet the terms of an implied contract.
A legally enforceable agreement that arises from conduct, from assumed intentions, from some relationship among the immediate parties, or from the application of the legal principle of equity.
For example, a contract is implied when a party knowingly accepts a benefit from another party in circumstances where the benefit cannot be considered a gift. Therefore, the party accepting the benefit is under a legal obligation to give fair value for the benefit received. Opposite of express contract. See also express contract, implied in fact contract, and implied in law contract.
How to use Implied contract in a sentence?
- Because of the lack of documentation, it is more difficult to enforce an implied contract in some circumstances.
- It was an implied contract and that meant that there were still some rules to be followed and fulfilled by the parties involved.
- The implied contract is assumed to exist, and no confirmation is necessary.
- An implied contract is created by the actions, behavior, or circumstances of the people involved.
- Although there was never documentation drawn up, my roommates owe me money for the electric bill because the implied contract was that we would be splitting the bill.
- An implied contract has the same legal force as a written or verbal contract.
- When I was taken to the hospital for treatment it created an implied contract that they would provide necessary care and that I would in turn compensate them for their services.
Meaning of Implied contract & Implied contract Definition