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Implied Contract - Legal Relationship through actions

Posted on: 08th Apr, 2004 11:44 pm
Implied Contract is a legal relationship which is created by actions of the parties, without written or oral agreements. Here the terms are not expressed but they are inferred from the actions of the parties.

For example, claims in advertisement and labeling establish an implied contract between the seller and the buyer. A promise made by the supervisor, a statement in the employee handbook and a historical action by the employer are some of the other examples that may constitute an implied contract.

Sometimes an implied contract overrides signed contracts. It is typically up to the interpretation of the courts or arbitrators to decide whether or not a binding implied contract exists and is breached.

Implied contracts are of two types.
  • Implied-in-fact contract: Such contracts are created from the conduct performed by the party making a promise and the method of agreement.

  • Implied-in-law contract: These contracts are not really contracts but can be considered as legal remedies for an apparent injustice. It is also known as quasi-contract - a legal substitute for a contract. It is used by the court when the court wants to create an obligation so that injustice can be avoided.
Implied contracts exist in almost all our daily affairs although in some areas like in public agencies, it is dangerous to apply for it. You may come across problems if you operate with a lot of implied contracts. You must try to formalize as many contracts as possible and must have real good reasons for not formalizing the others.
i have no written non-compete agreement. However, it has been made clear to all employed sales representatives that they are "Actual Employees of the Company" and not independent contractors. they are well trained,provided all confidential and proprietary information needed to
acquire sales for the company. Further, as employees, they have many benefits such as health insurance,retirement plans,match social security benefits,all products and samples they use are paid for by the co. the co. absorbs all bad debts from non-paying clients as long as they were sold under co. credit policies.
They are paid a commission based on the gross profit of orders brought into the company and they have the potential to earn bonuses.
Posted on: 07th Aug, 2010 03:51 pm
i have no written non-compete agreement. However, it has been made clear to all employed sales representatives that they are "Actual Employees of the Company" and not independent contractors. they are well trained,provided all confidential and proprietary information needed to
acquire sales for the company. Further, as employees, they have many benefits such as health insurance,retirement plans,match social security benefits,all products and samples they use are paid for by the co. the co. absorbs all bad debts from non-paying clients as long as they were sold under co. credit policies.
They are paid a commission based on the gross profit of orders brought into the company and they have the potential to earn bonuses.
Posted on: 07th Aug, 2010 03:58 pm
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