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A guide to implied contracts in Texas

A contract allows people in Texas to specify legal rights between themselves. Most of these agreements are in writing, and the parties involved sign them to make them enforceable. However, some contracts don’t come with pages of text outlining every little detail of the transaction.

Implied contract defined

An implied contract is an agreement that is not written down or stated explicitly but is inferred from the circumstances and the actions of the parties involved. For example, if you walk into a restaurant, a waiter will offer you a seat and bring you something to eat or drink. When done, you are obligated to pay for the food or drink and perhaps tip the waiter for their service. There is no written agreement in this transaction, but the actions of both parties imply a contract.

Types of implied contracts

There are two categories of implied contracts: implied-in-fact and implied-in-law. Although the former is more common, the latter also exists.

An implied-in-fact contract happens when one party makes an offer that another party accepts without any formal agreement between them. For example, if you hire someone to perform a service for you, like painting your house or fixing your car, they have agreed to do the job even though there’s no written agreement. The act of hiring someone implies that both parties agree to certain terms and conditions.

An implied-in-law contract occurs when one party has an obligation to do something, but that commitment was not agreed upon by either party. This type of contract is also known as a quasi-contract and usually comes up when the parties involved exchange money or property without any formal agreement. For example, if you borrowed another person’s car, chances are you would be responsible for returning it in the same condition they gave you, even though there wasn’t a written contract stating that.

Rules for implied contracts in Texas

In Texas, implied contracts are subject to the same legal rules as all other kinds of contracts. They are legally binding, and the law deals with noncompetition agreement contracts and disputes just as with any other type of agreement.

Although implied contracts are not always written down, they still have legal standing in Texas, and parties involved must honor them. It is, therefore, important to understand what constitutes an implied contract and the rules that govern them in the state of Texas. This can help you make informed decisions protecting your rights in case a dispute arises.