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Simple English definitions for legal terms
contract implied in fact
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A quick definition of contract implied in fact:
A contract implied in fact is when two people agree to something without saying it out loud. They show they agree by their actions. This kind of contract is just as important as a written contract and can even change what is written in a contract. To make this kind of contract, both people need to agree clearly, mean it, and get something in return. For example, if someone asks for ice cream and the person serving it gives it to them, they have a contract implied in fact because they both knew they were supposed to pay for the ice cream. This is different from a contract implied in law, which is when someone didn't mean to make a contract but the court says they have to follow it anyway.
A more thorough explanation:
A contract implied in fact is a type of contract that arises from a mutual agreement expressed through actions rather than words. This type of contract is legally enforceable and can supersede or modify written contracts on the same topic.
To establish the existence of an implied in fact contract, four elements must be shown:
- An unambiguous offer
- Unambiguous acceptance
- Mutual intent to be bound
- Consideration
These elements are the same for both express contracts and implied contracts. The difference between the two is that an implied contract does not require any of the above elements to be established through oral or written words.
For example, if a customer asks for a scoop of ice cream at an ice cream parlor and the store-hand gives the customer the ice cream, a contract implied in fact exists. The circumstances indicate the intent to form a contract because the interaction took place in a location where custom dictates money is exchanged for ice cream.
In contrast to a contract implied in fact is a contract implied in law, which is where a party does not intend to create a contract, but the court concludes they should be bound by one anyway.