An implied contract, as the name suggests, is a contract that is not expressly stated in writing or orally but is formed through the actions or conduct of the parties involved. It is also referred to as an implied-in-fact contract.
Unlike an express contract, an implied contract may not have a specific duration or termination clause outlined. Therefore, the termination of an implied contract may not be as straightforward as that of an express contract.
However, the termination of an implied contract may be inferred from the conduct or actions of the parties involved. Here are some ways in which an implied contract can be terminated:
- Mutual agreement: Just as with express contracts, the parties can mutually agree to terminate the implied contract. This can be done through a written agreement, an exchange of emails, or through their conduct.
- Performance: The parties can also terminate the implied contract through their performance. This means that if the parties have completed all the obligations required of them under the implied contract, the contract is considered to have been fulfilled and terminated.
- Breach: If one party breaches the implied contract by failing to fulfill their obligations, the other party may consider the contract to be terminated. The aggrieved party may then seek legal remedies for the breach of the contract.
- Frustration: Frustration occurs when an event outside the control of either party makes it impossible to fulfill the terms of the contract. In such a case, the implied contract may be considered frustrated, and therefore terminated.
- Abandonment: If one party demonstrates an intention to abandon the implied contract, the other party may consider the contract to have been terminated. However, the intention to abandon must be clearly demonstrated through the conduct of the party.
It is important to note that the termination of an implied contract does not absolve the parties from any obligations that may have arisen during the existence of the contract. Any obligations that arose during the term of the contract must still be fulfilled, and any breach of the contract may still result in legal action.
In conclusion, while an implied contract may not have a specific termination clause, it can be terminated through mutual agreement, performance, breach, frustration, or abandonment. The termination of an implied contract does not absolve the parties from any obligations that may have arisen during the term of the contract.
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