Business litigation and implied contracts

On Behalf of | Dec 26, 2019 | Business Litigation |

Most people in Ohio are aware that contracts are generally written agreements wherein the parties to the contract agree to some sort of bartered exchange. These contracts most often entail the exchange of money for some sort of goods or services, but these agreements can address a whole host of issues. As simple as contracts may seem, they can be extraordinarily complicated, which gives rise to misinterpretations, bad actors and contract disputes. When a breach of contract has occurred, business ligation may be the next step.

But breach of contract doesn’t just pertain to written agreements. This is because an implied contract, which does not exist in written form, may be created between parties. This type of contract most often comes into existence when the actions or circumstances of the parties set expectations that are contractual in nature. One of these contracts can also be created when the past conduct of the parties creates a relationship where goods and services are exchanged.

For example, if a manufacturer routinely delivers goods on a monthly basis without a written contract and then suddenly stops delivering them without notice, the manufacturer may be found to have breached an implied contract. This is because the recipient of the goods detrimentally relied on the manufacturer’s behavior.

Implied contracts are just as legally binding as written ones. However, proving the existence of an implied contract can sometimes be a challenging feat. This shouldn’t deter individuals from pursuing a breach of contract case when they believe an implied contract was created and breached, though. After all, in the business world, a breached contract can affect not only the bottom line, but also a business’s reputation and goodwill.

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