What does an implied agreement rely on?

An implied agreement relies on the actions and conduct of the parties involved rather than any explicit written or verbal terms. This type of agreement arises when the behavior of the individuals suggests that there is an understanding or contract between them, even if it has not been formally articulated.

For example, if two parties engage in a business relationship where one consistently provides services and the other pays for them, their actions may create an implied contract whereby both parties acknowledge their obligations based on their conduct, even without a written or spoken agreement. This reliance on behavior allows the legal system to recognize the existence of an agreement based on the parties’ interactions, offering protections and recourse if one party fails to fulfill their perceived commitments.

In contrast, explicit terms and conditions, verbal agreements documented in writing, or formal contracts represent clear, acknowledged agreements that are expressly stated, rather than derived from the mere conduct of the parties. These established forms of agreements do not require the interpretation of actions and therefore are distinctly different from implied agreements.