Implied Agreement by Conduct: How It Works
In the world of contract law, agreements between two parties are typically formed through a written contract or agreement signed by both parties. However, there are cases where an agreement can be formed through the conduct of the parties involved. This is known as an implied agreement by conduct, also called a tacit agreement or an implied contract.
An implied agreement by conduct is formed when the actions of both parties are such that they demonstrate their intent to create a binding agreement. This can happen when one party proposes an offer, and the other party responds by acting in a way that suggests acceptance of the offer.
For example, if a customer enters a restaurant and orders a meal, the restaurant is making an implied agreement by conduct to provide that meal. The customer, in turn, is making an implied agreement by conduct to pay for the meal. This agreement is not explicitly stated in writing, but it is implied by the actions of both parties.
Another example of implied agreement by conduct is when a tenant continues to pay rent after the lease has expired. If the landlord accepts the rent payments without objection, the landlord is making an implied agreement by conduct to renew the lease on the same terms as the previous lease.
Implied agreements by conduct are legally binding and enforceable, just like written contracts. However, proving the existence of an implied agreement can be more challenging than proving a written agreement. This is because there is no written document to provide evidence of the terms of the agreement.
To establish the existence of an implied agreement by conduct, the actions and statements of both parties must be examined. It must be shown that both parties intended to enter into a binding agreement, and that their conduct was consistent with the terms of that agreement.
In conclusion, implied agreement by conduct is an important concept in contract law. It allows for agreements to be formed without the need for a written contract, but it also requires a careful examination of the actions and statements of both parties to establish the existence and terms of the agreement. As a professional, it is important to understand the legal implications of this concept and to use accurate and precise language when discussing it.