Explanation :
Implied contracts emerge from the dynamics of a relationship. The parties normally assume the contract exists and they submit themselves to it without having a written or oral understanding. These contracts are normally caused by a recurring situation or an expected result. The fact that a situation repeats itself many times may give birth to an implied contract. If one of the parties refuses at some point to deliver its part of the agreement there is a legal basis to argue that a contract existed, even if it was not explicitly drawn. These types of contracts can be applied to both individual and business situations. The most common place we can find these implied contracts is in business-to-customer relationships.
Normally a customer will pay for a service and to some extent, the contract between the parties is implied. The payment triggers the obligation for the business side to deliver a particular good or service but sometimes there’s no written document or verbal agreement about it. It is just a situation where the agreement is deduced by both parties because of the interactions involved.
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