Image for Implied-in-Fact Contracts

Implied-in-Fact Contracts

Implied-in-fact contracts are agreements formed by actions, rather than explicitly stated words. Unlike express contracts, which involve clear verbal or written terms, implied-in-fact contracts arise when two parties behave in ways that suggest an understanding or agreement. For example, when you go to a restaurant and order food, it's implicitly understood that you'll pay for the meal even if no one explicitly states that. These contracts rely on the context and conduct of the parties, demonstrating mutual intent without formal communication. They're recognized legally just like express contracts.