An implied contract is an agreement whereby the acts of someone or people bind them to a contract. It is a valid contract and therefore the terms of the implied contract bound parties to their obligations. Failure of a party to perform can result in the party causing the damage to be sued.
For example, if a homeowner hires the services of an appraiser for the purpose of obtaining a loan, it is implied that a contract exists between them, even if the homeowner and appraiser never agreed to a specific price or agreement.
A quasi contract is an implied contract created by the courts in the event that a formal contract was not originally set forth between parties. It is a legally enforceable contract that is implemented to avoid jeopardizing a party’s legal equity.
How an Implied Contract is Determined
An implied contract is an assumed contract between parties that is not in writing or verbally discussed; however, an implied contract is based on the action of the parties.
Consider the following example: Jonny and Marry moved to Jefferson county. They did not notify the city of their moving into the city and did therefore did not create an account with the city for waste management services. Jonny and Marry take their trash out. The following day the trash is collected by the city. Can Jonny and Marry be billed for services rendered?
Yes, they can be billed and the city has the right to charge them for services rendered. Jonny and Marry made an implied contract when they took out their trash to pay for the service.
Types of Implied Contracts
Most implied contracts are considered an implied-in-law contract or implied-in-fact contract.
An implied-in fact contract is one that is created without words or direct agreement. It is implied through the acts of the parties involved. For example, assume Bill purchases grass from Ed’s Greenery every month. One day Ed is busy helping a client, and Bill points to the grass indicating he’ll take it and that he’ll pay for it later. In this situation, although Bill and Ed don’t talk to one another through words, the fact that Bill has purchased grass for a long period of time implies that Bill owes Ed money next time he returns to the store.
An implied-in-law contract is one where neither party of a contract agree to be in a contract. In this type of a contract, neither party intended for a contract to be created. An implied-in-law contract obligates parties to be bound by a contract for unforeseen reasons. For example, assume a dog starts attacking a person, and a bystander sees this and gives the dog the a piece of meat to distract the dogs attention. The next day the person who gave the dog the meat is entitled to be paid for the piece of meat that was eaten or destroyed by the dog.
Implied Contract in Consumer Products and Services
An implied contract protects consumers from product defects and inaccuracies for services provided. Consumers have the right to reasonably assume that when they purchase a product it will function in the manner intended. Should the product fail to work up to expectations, consumer of that product have an implied right to get their money back. If the damage occurred as a result of the purchasing party, the law will not protect them.
For example, imagine a party planner hires a photo booth rental company to provide services for an event at $500.00. If the photo booth rental company shows up however their products do not work, the party that paid for the services has the right to a refund, even if the company tried providing services. Consumers have reasonable expectations to get the products or services they paid for.
