When entering into a business relationship or agreement, people often think of contracts as binding legal documents that outline the terms and conditions of the deal. However, in some cases, an agreement or contract can be implied, which means that it is not explicitly written or signed, but rather inferred by the actions or behavior of the parties involved.
An implied contract is a legally recognized agreement between two parties that is not stated in writing but is rather inferred by the circumstances surrounding the agreement. This type of contract is often created through the behavior of the parties involved, such as a handshake or verbal agreement. However, an implied contract can still be legally binding, and the terms and conditions can be enforced by a court of law if necessary.
One of the most common examples of an implied contract is the employment relationship. When an employer hires an employee, there is typically an implied agreement that the employee will perform certain duties for a specified period of time, and the employer will compensate the employee with wages or salary. This agreement is not usually spelled out in writing, but rather inferred by the actions and behavior of the parties involved.
Another example of an implied contract is when a vendor is hired to provide services to a client. The vendor may not have a written contract with the client, but the client may have relied on the vendor`s representations of their ability to provide the services, which creates an implied agreement that the vendor will provide the services as promised.
While implied contracts are legally binding, they can be more difficult to enforce than an explicit written contract. This is because the terms and conditions of an implied contract are not spelled out in writing and can be subject to interpretation by a court of law. This is why it is often recommended that businesses and individuals enter into written agreements when possible, as it provides clarity and reduces the potential for dispute.
In conclusion, an implied contract is a legally binding agreement between two parties that is inferred by the actions or behavior of the parties involved. While these types of contracts can be enforceable, they can also be more difficult to enforce than explicit written contracts. For this reason, it is recommended that parties involved in a business relationship or agreement enter into a written contract whenever possible to reduce the risk of dispute.