An implied in fact agreement is a legally binding contract created by the actions, conduct, or circumstances of the parties involved. Unlike an express agreement, which is explicitly stated in writing or verbally, an implied in fact agreement is inferred through the conduct of the parties and the circumstances surrounding the transaction.

To create an implied in fact agreement, there must be mutual assent, or a meeting of the minds between the parties involved. This means that both parties must understand and agree to the terms of the contract, even if those terms are not expressly stated.

For example, let`s say that you own a restaurant, and you regularly order supplies from a particular vendor. Over time, you both develop a routine where the vendor delivers the supplies every week, and you pay the vendor within 30 days. Even though you never signed a contract or even discussed the terms, your actions and the vendor`s actions imply an agreement between you.

By regularly ordering from the vendor and paying on time, you have implied that you intend to continue doing business with them. The vendor, in turn, has implied that they accept your orders and will continue to deliver supplies on a regular basis.

While implied in fact agreements can be informal and unwritten, they can still be legally binding. If one party breaches the agreement, the other party has legal recourse to seek damages or enforce the terms of the agreement.

It`s important to note that not all agreements can be implied in fact. Certain types of contracts, such as those involving real estate or the sale of goods over a certain amount, may require a written contract to be enforceable.

In summary, an implied in fact agreement is a legally binding contract created by the actions, conduct, or circumstances of the parties involved. It requires mutual assent and can be informal and unwritten, but still legally binding. If you`re unsure whether an agreement is legally binding, it`s always best to consult with a legal professional.