Implied Contract
Definition:
An implied contract is a legally binding agreement created by the actions, behavior, or circumstances of the parties rather than by written or spoken words. It arises when it is clear that both parties intended to enter into an agreement, even though no explicit terms were stated. Implied contracts are enforceable in court when the conduct of the parties shows mutual understanding and acceptance of obligations.
Implied Contract Information
Implied contracts are formed through the conduct of the parties, which demonstrates an intention to be bound by certain terms. There are two main types: implied-in-fact and implied-in-law (also known as quasi-contracts). An implied-in-fact contract arises from the behavior of the parties, such as paying for a service that was performed with an expectation of compensation. An implied-in-law contract, on the other hand, is created by the court to prevent one party from being unjustly enriched at the expense of another. These contracts are vital in everyday transactions where formal agreements may not exist.
Florida Legal Definition
Under Florida law, an implied contract is recognized when the facts and circumstances demonstrate that the parties intended to make an agreement even without express terms. Florida courts distinguish between implied-in-fact and implied-in-law contracts, with the former based on conduct showing mutual consent, and the latter imposed by law to prevent unjust enrichment. The Florida Supreme Court has upheld the enforceability of implied contracts when a reasonable expectation of payment or performance exists. These principles are commonly applied in employment, service, and business disputes.
How It’s Used in Practice
In practice, implied contracts often arise in everyday dealings where parties act as though an agreement exists. For instance, if a homeowner requests repairs and allows work to be completed, a court may find an implied contract to pay for those services. In Florida, attorneys frequently cite implied contract principles in cases involving payment disputes, employment arrangements, and business transactions. Courts examine the conduct, communications, and relationship between parties to determine whether an implied agreement was formed.
Key Takeaways
- An implied contract is formed through conduct or circumstances, not written or spoken words.
- Two main types exist: implied-in-fact and implied-in-law (quasi-contract).
- Florida recognizes implied contracts when mutual intent or fairness justifies enforcement.
- Often applied in service, employment, and business transactions.
- Courts use implied contract principles to prevent unjust enrichment or unfair outcomes.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron & Shea, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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