Implied-in-Fact Contract

Implied-in-Fact Contract

Definition

An agreement between the parties that is implied from the facts and circumstances. A court may imply a contract, even if the parties never entered one, if (1) one party provides another with valuable services, property, or money; (2) the recipient has reason to know of this; (3) the circumstances reasonably indicate that the services, property, or money was provided with the expectation of compensation; and (4) the recipient manifests assent, as by knowingly using or retaining the benefit of the services, property, or money or failing to object under circumstances in which silence would suffice as acceptance of an offer.

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