Implied-in-Law Contract

In one sentence

A court-imposed obligation to prevent unjust enrichment when no actual contract exists.

Plain English

An implied-in-law contract is not really a contract at all—it's a legal remedy courts impose to stop someone from being unfairly enriched at another person's expense. When one party receives a benefit from another party without paying for it, and it would be unfair to let them keep it for free, courts may require payment. This happens when there's no actual agreement between the parties, but fairness demands that one person compensate the other.

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Example

A contractor mistakenly builds a deck on your property instead of your neighbor's. You benefit from the work, but you never asked for it or agreed to pay. The court may impose an implied-in-law contract requiring you to pay the contractor's reasonable costs to prevent his unjust loss.

Used in a sentence

“The judge imposed an implied-in-law contract to require the defendant to pay for the services he received without agreement.”

Related terms

Quasi-Contract

A court-imposed obligation to pay for benefits received, used to prevent unjust enrichment.

Implied-in-Fact Contract

A contract inferred from the parties' conduct and the circumstances of their dealings.

Implied Contract

A contract where the parties' intent to be bound is shown by conduct rather than explicit words.

Rescission

Unwinding a contract entirely, returning both parties to their positions before the deal.

Reliance Damages

Compensation for losses suffered by relying on a promise, even if no formal contract exists.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.