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Implied contracts in business law

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Contracts are the foundation of the business world in Florida. Without them, businesses would not be able to obtain the consistency in costs and supplies needed to provide consumers with steady and reliable products and services. Of course, the terms of a contract must be carefully negotiated in order to ensure a fair bargain, and legal action is often justified when those terms are breached. But, businesses need to be careful in their communications and interactions with other parties to avoid creating a contractual relationship when they do not intend.

This is because the law recognizes implied contracts. An implied contract is one that is created through actions and circumstances, even when the agreement has not been reduced to writing or even acquiesced to in verbal form.

One type of implied contract is implied in fact, meaning that the actions of the parties give rise to a contractual relationship. For example, consider a situation where a fabric maker supplies the same amount of fabric to a clothing manufacturer at the same time every month and for the same price. Despite the fact that there is no written agreement or verbal promise amongst the parties, either one may be held liable for breach of contract, if they fail to provide fabric or payment in accordance with the history of their relationship with the other party.

A quasi-contract is another type of implied contract. A judge generally recognizes this type of contract when a party accepts goods or services even though the receiving party did not request them. To correct a lopsided arrangement, then, a court may impose a contractual relationship, thereby forcing the receiving party to pay for what was received.

Implied contracts can have tremendous ramifications in the business world. Determining whether or not they exist can be a complicated matter, too. Therefore, it is usually wise for businesses to fully understand contract law.