Implied Agreement Meaning: Understanding the Unspoken Contract
In our daily lives, we come across different types of agreements. Some are formal, while others are informal. The law recognizes both written and verbal agreements as legally binding. However, there is another type of agreement that exists – an implied agreement.
So, what is an implied agreement, and what does it mean?
An implied agreement is an unspoken and unwritten understanding between two or more parties. It arises from the parties` conduct or circumstances, and it is based on the assumption that they have mutually understood the terms of the agreement. It is sometimes called an implicit agreement or a tacit agreement.
For example, imagine that you walk into a restaurant, sit down, and order food. You have entered into an implied agreement with the restaurant that they will provide you with food in return for payment. You haven`t signed any contract or discussed the terms of your agreement. Still, you both understand the expectations of the situation.
In most cases, implied agreements are informal and don`t involve legal documentation. However, in certain contexts, implied agreements can be legally binding. Suppose two parties engage in a business transaction and conduct themselves in a way that suggests that they have agreed to certain terms. In that case, a court may enforce that agreement, even if it has not been explicitly stated in writing.
The critical factor in an implied agreement is the parties` conduct and their intention to be bound by the agreement. For instance, suppose you hire a contractor to install a new roof and ask them to use a particular type of material. If the contractor agrees and uses the specified material, an implied agreement arises that they will complete the work using that material.
However, if there is any ambiguity in the conduct or circumstances, it might be challenging to prove the existence of an implied agreement. Therefore, it is always best to clarify the terms of any agreement explicitly.
In conclusion, an implied agreement is a type of contract that arises from the parties` conduct or circumstances. It is based on the assumption that the parties have mutually understood the terms of the agreement. Implied agreements can be informal, but they can also be legally binding in certain contexts. To avoid any ambiguity, it is always best to clarify the terms of any agreement explicitly.