Implied contract

Principal Debtor and Surety, Principal and Agent

Hi,

The second part of Section 9 of the Indian Contract Act deals with implied contracts. It says, “insofar as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.” Thus, contracts entered into between parties by virtue of their conduct are called implied contracts.

The terms of the agreement are not expressed in written or oral form but are inferred from their conduct.

Implied contracts come into existence by implication. Example: Where a coolie in uniform picks up the luggage of A to be carried out of the railway station without being asked by A and A allows him to do so, it is an implied contract and A must pay for the services of the coolie detailed by him.

Why may it be necessary to imply a term in some instances?

•omission of parties

•bad drafting

•term felt to be too obvious in their understanding

•custom or trade usage

•some terms may also be implied by law –depends on statute applicable

Some implied agreements - 

Lease agreement– implied terms include giving possession of the property by the owner to a tenant, etc.

Employment agreement– implied term that employee will act in good faith

It is not that different from an expressed contract.

I hope this solves your query.

Regards,

Archit.

Very well explained and advised by expert Mr. Archit Uniyal, I agree and appreciate.

What is your locus standi / concern to the agreement ?

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What are the actual facts vis-a-vis problem(s) ?

Originally posted by : Dr J C Vashista
	Very well explained and advised by expert Mr. Archit Uniyal, I agree and appreciate.

Thank You, Mr. Vashista. I really appreciate it.

Promises, express and implied.—In so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied. —In so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied."