In the world of law, contracts are the most common way to formalize agreements between individuals or businesses. A contract implies that both parties have agreed to certain terms and conditions, and if either party fails to uphold their end of the agreement, there may be legal consequences.
But what happens when a contract is not explicitly written or signed? That’s where a “contract implied in law” comes into play.
A contract implied in law, also known as a quasi-contract or implied contract, is a legal agreement that is not explicitly stated but is implied based on the circumstances of the situation. It is created by the courts to prevent one party from being unjustly enriched at the expense of another.
One example of a contract implied in law is known as “quantum meruit,” which translates to “as much as he deserved.” This type of contract applies when one party performs services for another party, but there was no prior agreement on the payment for those services.
For example, imagine that you hire a contractor to build a deck on your house. While you never explicitly agreed on the price, the contractor completed the project and presented you with a bill. If you refuse to pay the bill, the contractor can sue you for the amount he believes he deserves based on the fair market value of his services.
Another example of a contract implied in law is “unjust enrichment.” This type of contract applies when one party benefits from another’s actions without compensating them.
For instance, let’s say that you own a rental property and your tenant has a leaky faucet. Without your knowledge, the tenant hires a plumber to fix the problem and deducts the cost from their rent payment. In this case, the plumber can sue you for the amount he deserves based on the fair market value of his services, since he provided a benefit to you without receiving compensation.
In conclusion, while a written and signed contract is the best way to formalize an agreement, a contract implied in law can provide protection in situations where no prior agreement was made. It’s important to understand the different types of implied contracts and how they apply to your specific situation to ensure a fair outcome.