Implied Contract
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Definition of 'Implied Contract 'A legal substitute for a contract. An implied contract is an agreement created by actions of the parties involved, but it is not written or spoken. This is a contract assumed to have been drawn. In this case, there is no written record nor any actual verbal agreement. A form of an implied contract is an implied warranty provided automatically by law. An implied warranty means that when a product is purchased, it is guaranteed to work for its ordinary purpose. For example, a refrigerator is fit to keep food cool. |
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Investopedia explains 'Implied Contract 'Implied contract is an agreement which is not reduced to writing but is created on the basis of the behavior of the parties involved. Under an implied contract, it is suggested that the parties involved are acting under an agreement. In the medical field, an implied contract exists when a veterinarian examines and treats an animal. It is implied that the veterinarian will do his/her best and that the client will pay the fee charged. Historically the veterinarian has treated animals and the owners have paid. |
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