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Legal Definitions - contract implied in law

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Definition of contract implied in law

A contract implied in law, also known as a quasi-contract or a constructive contract, is a legal obligation created by the court to prevent unjust enrichment. It is not an actual contract, but rather a legal fiction created to ensure fairness and equity in certain situations.

For example, if a person provides services to another person without a prior agreement, the court may imply a contract to ensure that the person who received the services pays for them. This is because it would be unfair for the person who provided the services to go uncompensated.

A contract implied in law is different from a contract implied in fact, which is an actual contract that is not expressed in writing or words. In a contract implied in fact, the parties intend to create a contract through their actions or conduct.

It is important to note that a court cannot find a contract implied in law if there already exists a contract, either express or implied, covering the same subject matter. Additionally, a contract implied in law only operates as a valid contract for purposes of remedy, meaning that it only allows for compensation for the benefit conferred upon the defendant by the plaintiff.

One example of a contract implied in law is when a person provides emergency medical care to another person without a prior agreement. The court may imply a contract to ensure that the person who received the medical care pays for it, as it would be unfair for the person who provided the care to go uncompensated.

Another example is when a person performs repairs on another person's property without a prior agreement. The court may imply a contract to ensure that the person who received the repairs pays for them, as it would be unfair for the person who provided the repairs to go uncompensated.

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Simple Definition

A contract implied in law, also known as a quasi-contract or constructive contract, is a legal obligation created by a court to prevent someone from unfairly benefiting at the expense of another person. It is not a real contract, but rather a way for the court to make sure that justice is served. This type of contract only applies to remedies, not to the general rules of contracts. It can only be used if there is no other contract already in place that covers the same subject matter. A constructive contract can occur if someone receives a benefit from another person, knows about it, and keeps the benefit without paying for it, which would be unfair. This is different from a contract implied in fact, where the parties intend to create a contract, but do not do so in writing or verbally.

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