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Contracts/Implication-in-fact

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Revision as of 02:58, September 12, 2006 by en>Lagringa (removed merge tag)

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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 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.