Implied Contract

An implied contract is a legally binding agreement that arises from the conduct of the parties involved. In this type of contract, the offer is made through the express behavior of one party, and the acceptance is implied through the behavior of the other party.

Formation of Implied Contract

An implied contract is formed when the parties involved do not explicitly state the terms of their agreement but instead imply them through their actions. The contract is created when one party offers something, and the other party accepts it through their behavior.

For example, if a customer walks into a store and picks up a product, the store owner offers to sell the product at a particular price. The customer's acceptance of the offer is implied through their behavior of picking up the product and presenting it for purchase.

Essential Elements of Implied Contract

To form an implied contract, the following essential elements must exist:

1. Mutual Assent - Both parties must have a meeting of the minds, which means they both understand and agree to the terms of the agreement.

2. Offer and Acceptance - The offer is made through one party's behavior, and the acceptance is implied through the other party's behavior.

3. Consideration - Both parties must exchange something of value, such as goods, services, or money.

4. Legality - The contract must not involve illegal activities or be against public policy.

Conclusion

In conclusion, an implied contract is a legally binding agreement that arises from the conduct of the parties involved. It is formed when the offer is made through the express behavior of one party, and the acceptance is implied through the behavior of the other party. To form an implied contract, there must be mutual assent, offer and acceptance, consideration, and legality.