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Contracts/Implication-in-fact: Difference between revisions

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An '''implied-in-fact contract''' (also, ‘’’contract implied-in-fact’’’ or simply, ‘’’implied contract) refers to a contract that exists by virtue of non-verbal conduct, rather than by explicit words. An implied contract has the same legal force as an express contract, though it may be more difficult to prove the existence and terms of an implied contract should a dispute arise. Generally an implied-in-fact contract is formed when one accepts something of value knowing that the other party expects compensation. For example, by going to a doctor for a physical, a patient agrees that he will pay a fair price for the service. If he refuses to pay after being examined, he has breached a contract implied in fact.
 
An '''implied in fact contract''' occurs when the circumstances of a case and the circumstances surrounding the fact indicate that an [[agreement]] have been reached. This implied in fact [[contract]] is inferred by the court from the conduct of the parties.
 
In the case Landsberg vs. [[Selchow and Righter]], Landsberg wrote a book about strategy for [[Scrabble]]. He approached the makers of Scrabble to use the trademark, they asked him to read the book, then stole it. There was no express offer, acceptance, and consideration. Landsberg [[lawsuit|sued]] and the court found that there was an implied contract.
 
An implied in fact contract for the payment of receiving a valuable idea is found when the recipient receives the information and uses it without paying for it even though he knows that compensation should be received for it.


[[Category:Contract law]]
[[Category:Contract law]]

Revision as of 03:28, September 12, 2006

An implied-in-fact contract (also, ‘’’contract implied-in-fact’’’ or simply, ‘’’implied contract) refers to a contract that exists by virtue of non-verbal conduct, rather than by explicit words. An implied contract has the same legal force as an express contract, though it may be more difficult to prove the existence and terms of an implied contract should a dispute arise. Generally an implied-in-fact contract is formed when one accepts something of value knowing that the other party expects compensation. For example, by going to a doctor for a physical, a patient agrees that he will pay a fair price for the service. If he refuses to pay after being examined, he has breached a contract implied in fact.