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Information for "Contracts/Implication-in-fact"

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Display titleContracts/Implication-in-fact
Default sort keyImplied-In-Fact Contract
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Page ID20887
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Page creator80.230.223.220 (talk)
Date of page creation03:26, September 5, 2005
Latest editorDeRien (talk | contribs)
Date of latest edit13:48, July 31, 2023
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An implied-in-fact contract, or an implied contract in the proper sense, arises where the intention of the parties is not expressed, but an agreement in fact, creating an obligation, is implied or presumed from their acts,[1] or, as it has been otherwise stated, where there are circumstances which, according to the ordinary course of dealing and the, common understanding of men, show a mutual intent to contract.[2] It follows that the only distinction between this species of contract and express contracts rests in the mode of proof;[3] the nature of the understanding is the same, and both express contracts and contracts implied in fact are founded on the mutual agreement of the parties.[4] The one class is proved by direct, the other by indirect, evidence;[5] in other words, the one must be proved by an actual agreement, while in the case of the other it will be implied that the party did make such an agreement as, under the circumstances disclosed, he ought in fairness to have made.[6] The implication, of course, must be a reasonable deduction from all the circumstances and relations of the parties,[7] although it need not be evidenced by any precise words,[8] and may result from random statements and uncertain language.[9] A contract will not be implied where it would result in the perpetration of a wrong,[10] or it would be inequitable to do so,[11] or where the parties cannot legally make an express contract;[12] so a promise to do an act contrary to duty or to law is never implied.[13]
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