An implied in fact contract is a type of contract that is not explicitly stated or written down, but rather inferred from the actions and conduct of the parties involved. In other words, it is an agreement that is implied through the actions of the parties, rather than expressly stated.
In business law, an implied in fact contract can arise in various situations. For example, if a company regularly orders goods or services from a supplier without entering into a formal written agreement, a contract may be implied based on the parties` conduct and expectations.
Another common scenario where an implied in fact contract may arise is in the employment context. When an individual accepts a job offer and begins working for a company, there is typically an implied agreement that the employer will pay the employee for their services rendered. Even though this agreement may not be explicitly stated in writing, it is implied based on the parties` conduct and the expectations of both parties.
One of the key factors in determining whether an implied in fact contract exists is the intention of the parties involved. If both parties have an understanding of the terms of the agreement, and conduct themselves accordingly, then an implied in fact contract may be deemed to exist.
However, it is important to note that an implied in fact contract is not the same as an implied in law contract, also known as a quasi-contract. An implied in law contract is a legal fiction created by the courts to prevent unjust enrichment, whereas an implied in fact contract is based on the actual conduct and actions of the parties involved.
In conclusion, an implied in fact contract is an agreement that is inferred from the conduct and actions of the parties involved. It is a common occurrence in business law, and can arise in a variety of situations where the parties act as if they have entered into an agreement, even if no formal contract exists. As a savvy business owner or operator, it is important to understand the nuances of implied in fact contracts to ensure that you are fully aware of your legal obligations and any potential liabilities that may arise.