A contract which is not made in written or in words is calleda)quasib)...
< b="" />Introduction< />
A contract is a legally binding agreement between two or more parties that creates rights and obligations. Generally, contracts are formed when parties express their agreement in writing or orally. However, there are situations where contracts can be implied, meaning they are not explicitly stated but are inferred from the conduct or actions of the parties involved.
< b="" />Implied Contracts< />
An implied contract is one that is not made in written or spoken words but is created through the behavior or actions of the parties involved. These contracts are legally enforceable, just like express contracts, even though they are not explicitly stated. Implied contracts are based on the principle of "quasi-contract" or "implied-in-fact contract."
< b="" />Key Characteristics of Implied Contracts< />
Implied contracts have certain key characteristics, including:
1. Conduct: Implied contracts are created by the conduct or actions of the parties involved. For example, if someone hires a contractor to renovate their kitchen and the contractor starts working, it is implied that there is an agreement to pay for the services rendered.
2. Mutual Intent: Both parties must have a mutual intent to enter into a contract. This intent can be inferred from the actions or behavior of the parties. For example, if someone goes to a restaurant, orders a meal, and consumes it, there is an implied contract to pay for the meal.
3. Reasonable Expectation: Implied contracts are based on the reasonable expectation of the parties. The actions or conduct of the parties must suggest that they intended to enter into a contractual relationship.
< b="" />Examples of Implied Contracts< />
Some common examples of implied contracts include:
1. Employment Contracts: When an individual starts working for a company, there is an implied contract that they will be paid for their services.
2. Rental Agreements: If someone rents an apartment and starts living there, there is an implied contract that they will pay the agreed-upon rent.
3. Professional Services: When someone seeks professional advice or services, such as consulting or legal services, there is an implied contract to pay for those services.
< b="" />Conclusion< />
In conclusion, an implied contract is a contract that is not made in written or spoken words but is created through the conduct or actions of the parties involved. These contracts are legally enforceable and are based on the principle of "quasi-contract" or "implied-in-fact contract." Implied contracts have certain key characteristics, including conduct, mutual intent, and reasonable expectation.
A contract which is not made in written or in words is calleda)quasib)...
Implied contracts come into existence by implication or by conduct .
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.