Nashville, TN – Most contracts that bind businesses are formalized in writing with clear terms. However, this is not always the case due to industry custom and trade practices, verbal agreements, previous dealings, and other evidence that may form an implied agreement. It is possible that these kinds of implied agreements may actually be enforced by a court if there is a dispute. Any business that is having issues with enforcement of problems such breach of industry custom or verbal agreements should look into speaking with a licensed business attorney.  

The definition of an implied contract

An implied agreement is essentially formed through the actions of the parties rather than a document. By definition, its presence can be assumed by courts from looking at evidence. It is possible that the parties will be bound to the terms of an implied contract just as if there was a definite, written contract that existed. In this sense, the fact that the contract is not formalized may not matter, and it does not preclude the courts from finding an implied contract. 

Breach of an implied contract

Just like formal contracts, a breach of an implied contract may result in remedies such as issuing damages or the court asking for specific performance of its terms. The court can choose to issue damages to cover actual and projected losses from breach of an implied contract. There are also equitable remedies that may be issued where something of a comparable value to the contract is awarded. 

When may an implied contract be denied?

The statute of frauds requires certain items to always be in writing, otherwise the terms cannot be enforced. This includes real estate transactions and land sales, payments of any significant dollar amount, any services that will take longer than a year to complete, and sales of goods. It is possible that a court may use its discretion to deny an implied contract in many situations depending on whether the judge assigned to the case feels that the situation merits a formal document. 

Implied contracts in law

There are also some situations where a court finds a contract exists in order to prevent the unjust enrichment of one party. Unjust enrichment is essentially a situation where one party receives a benefit without actually having to pay for it. Courts have generally frowned upon situations where a defendant would unfairly receive the benefit of unjust enrichment.  

Help from a Tennessee business attorney

The Law Office of George R. Fusner is a business law practice that works with clients in the Nashville area. Their attorneys handle various matters related to contract law, real estate, construction, and fraud. 

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027


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