Contract Implied in Fact Example


A contract implied in fact is a legally binding agreement between two parties that is not expressed in writing or words. Instead, it is inferred from the actions, conduct, and circumstances of the parties involved. In this article, we will explore examples of a contract implied in fact and how it can be enforced in a court of law.

One example of a contract implied in fact is when a customer enters a store and picks up an item to purchase. The act of picking up the item and placing it in the cart implies an agreement to purchase the item at the listed price. The customer`s conduct and actions create an implied agreement to pay for the item.

Another example of a contract implied in fact is when a tenant continues to pay rent even after the expiration of their lease agreement. The act of paying rent implies an agreement to continue to occupy the property and abide by the terms of the previous lease agreement. The landlord`s acceptance of the rent payment creates an implied agreement to allow the tenant to remain on the property.

A contract implied in fact can also be created through the course of a business relationship. For example, if a company regularly orders supplies from a vendor and the vendor regularly delivers the supplies, an implied agreement is created that the vendor will continue to provide the supplies and the company will continue to pay for them.

Enforcing a contract implied in fact can be challenging as there is no written agreement outlining the terms of the contract. However, a court of law can use the parties` behavior, actions, and conduct to determine the terms of the implied contract. It is essential to provide evidence such as emails, invoices, or receipts to support the existence of the implied contract.

In conclusion, a contract implied in fact is a legally binding agreement created through the actions, conduct, and circumstances of the parties involved. These examples provide insight into how a contract implied in fact can be established. It is important to keep in mind that although these agreements are not expressed in writing, they are still legally enforceable.