When it comes to legal agreements and contracts, it is essential to have everything written down in clear and concise terms. However, that`s not always the case. There are instances where the parties involved have to infer the terms of the agreement from their conduct or actions. In such situations, the contract is said to be an implied contract.
An implied contract is a legal agreement that is not explicitly stated in writing. Instead, it is inferred from the conduct of the parties involved. This type of contract can arise when two parties have a business relationship that doesn`t require a formal agreement. An implied contract can also arise when the parties involved have a history of doing business together, and the terms of the agreement are well understood.
For instance, imagine a scenario where a vendor supplies goods to a business, and the business consistently pays for the goods without any issues. Although there`s no written agreement between the two parties, an implied contract is formed, and the vendor can reasonably expect payment for any future orders.
Overall, an implied contract can be just as valid and binding as a written one. However, it might be more challenging to prove the terms of the agreement in court since there`s no written documentation.
In conclusion, an implied contract is a legal agreement that is inferred from the conduct of the parties involved. It`s important to understand that an implied contract can be just as binding as a written one. However, it`s always recommended to have everything in writing to avoid misunderstandings and disputes in the future.