An “Implied Contract” is a type of agreement that is not explicitly written or spoken but is inferred from the actions, conduct, or circumstances of the parties involved. This legal concept arises when the behavior of the parties suggests that they have a mutual understanding or agreement, even though there is no formal contract in place. Implied contracts are often recognized in situations where one party provides a service or benefit, and it is reasonable to expect compensation in return.
For example, if a homeowner hires a plumber to fix a leaky pipe and the plumber performs the work with the expectation of payment, an implied contract exists. Even if there was no formal agreement on the price, the homeowner is expected to pay for the services rendered based on the implied understanding.
Related Terms:
Non-Disclosure Agreement (NDA)
