Examples of Implied Contracts

Example 1: Sam enters a hair salon, sits down in a chair, and asks for a haircut, which the barber then provides. By asking for the haircut, Sam has impliedly agreed to pay for the haircut. By beginning to cut the hair, the barber has impliedly agreed to provide that service in exchange for monetary compensation.

Example 2: Ryan, a doctor, witnesses his neighbor collapse on his front porch as he chances to be strolling past his home. After rushing to his neighbor’s aid, Ryan discovers that he has had a stroke and treats him medically until help from the emergency services arrives. Later, Ryan gives the neighbor the bill for his medical services. In this case, the court will acknowledge the existence of an implied-in-law contract between Ryan and his neighbor because the fundamental justice principle suggests that Ryan should be fairly compensated for the professional services he rendered, even though the neighbor neither requested the services nor had any intention of paying Ryan at the time.

Implied Contract: Meaning, Types, Features, Examples & FAQs

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What is Implied Contract?

An implied contract is a legally enforceable duty that results from the deeds, behavior, or conditions of one or more parties to an agreement. It has the same legal effect as an explicit contract, which is freely entered into and decided upon by two or more parties, either orally or in writing. Contrarily, the implied contract is presumed to exist and does not require either verbal or written confirmation....

Types of Implied Contracts

1. Implied-in-fact Contracts...

Features of Implied Contract

1. Mutual Intent: Implied contracts require mutual assent or agreement between the parties involved, even though the terms may not have been explicitly discussed. The parties must demonstrate through their actions or behavior that they intended to enter into a contractual relationship....

Examples of Implied Contracts

Example 1: Sam enters a hair salon, sits down in a chair, and asks for a haircut, which the barber then provides. By asking for the haircut, Sam has impliedly agreed to pay for the haircut. By beginning to cut the hair, the barber has impliedly agreed to provide that service in exchange for monetary compensation....

Conclusion

An explicit contract is a legally enforceable agreement, whether written or verbal, that is knowingly entered into and acknowledged by both parties as a commitment to carry out certain tasks. The majority of contracts include some sort of benefit exchange, whereby one party receives products or services and the other side is compensated for the goods or services rendered. Implied agreements are created between the parties by inferring from their behavior and the surrounding circumstances, even in the absence of an explicit written or verbal agreement. This is what makes an implied contract unique....

Implied Contract- FAQs

Do implied contracts hold up in court?...