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implied-in-fact contract


implied-in-fact contract, defined:

a contract not explicitly formed but implied by the conduct of the parties. The term, implied-in-fact contract, makes an important legal distinction about the process by which the contract was formed, that is informally. Compare implied-in-fact contract to express contract which is explicitly created by the parties, either in speech or writing.

An example of implied-in-fact contract:

Fergus goes to the local supermarket to buy groceries for the week. He makes his selections and rolls his cart to the check stand where unloads his items. The cashier, not saying a word, rings up his purchases. Fergus pays, takes his groceries and leaves, not even thinking about the fact that he just executed an implied-in-fact contract for the sale of goods.
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