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WHAT IS EXPRESS AND IMPLIED-IN-FACT CONTRACTS
Express and Implied-in-Fact Contracts
An actual contract may be either express or implied-in-fact. These contracts are described in the following paragraphs.
An express contract
is stated in oral or written words. Most personal and business contracts are express contracts.
express contract
An agreement that is expressed in written or oral words.
Examples
A written agreement to buy an automobile from a dealership is an express contract because it is in written words. An oral agreement to purchase a neighbor’s bicycle is an express contract because it is in oral words.
An implied-in-fact contract
is implied from the conduct of the parties. The following elements must be established to create an implied-in-fact contract: (1) The plaintiff provided property or services to the defendant, (2) the plaintiff expected to be paid by the defendant for the property or services and did not provide the property or services gratuitously, and (3) the defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
implied-in-fact contract
A contract in which agreement between parties has been inferred from their conduct.
In the following case, the court had to decide whether there was an implied-in-fact contract.
Ethics Implied-in-Fact Contract Prevents Unjust Result
“The appellants produced sufficient evidence to create a genuine issue of material fact regarding whether an implied-in-fact contract existed between the parties.” —Graham, Circuit Judge
MORE ON WHAT IS IMPLIED-IN-LAW CONTRACT (QUASI CONTRACT)
The equitable doctrine of implied-in-law contract , also called quasi contract, allows a court to award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed between the parties. Recovery is generally based on the reasonable value of the services received by the defendant.
implied-in-law contract (quasi contract)
An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enrichment and unjust detriment.
The doctrine of quasi contract is intended to prevent unjust enrichment and unjust detriment. It does not apply where there is an enforceable contract between the parties. A quasi contract is imposed where (1) one person confers a benefit on another, who retains the benefit, and (2) it would be unjust not to require that person to pay for the benefit received.
Example
Heather is driving her automobile when she is involved in a serious accident in which she is knocked unconscious. She is rushed to Metropolitan Hospital, where the doctors and other staff members perform the necessary medical procedures to save her life. Heather comes out of her coma and, after recovering, is released from the hospital. Subsequently, Metropolitan Hospital sends Heather a bill for its services. The charges are reasonable. Under the doctrine of quasi contract, Heather is responsible for any charges that are not covered by her insurance.
CONCEPT SUMMARY Classifications of Contracts
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Formation |
1. Bilateral contract. A promise for a promise. 2. Unilateral contract. A promise for an act. 3. Express contract. A contract expressed in oral or written words. 4. Implied-in-fact contract. A contract inferred from the conduct of the parties. 5. Implied-in-law contract (quasi contract). A contract implied by law to prevent unjust enrichment. 6. Formal contract. A contract that requires a special form or method of creation. 7. Informal contract. A contract that requires no special form or method of creation. |
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Enforceability |
1. Valid contract. A contract that meets all the essential elements of establishing a contract. 2. Void contract. No contract exists. 3. Voidable contract. A contract in which at least one party has the option of voiding the contract. 4. Unenforceable contract. A contract that cannot be enforced because of a legal defense. |
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Performance |
1. Executed contract. A contract that is fully performed on both sides. 2. Executory contract. A contract that is not fully performed by one or both parties. |