A tacit contract is a type of agreement that exists between two parties without any written or verbal communication regarding the terms of the agreement. Instead, the agreement is based on the actions and behaviors of both parties. In other words, the agreement is implied and understood without being explicitly stated.
While the term “tacit contract” is not commonly used in legal circles, the concept is recognized and understood. A tacit contract can arise in many different contexts, such as employment, business transactions, and even personal relationships.
For example, in an employment context, a tacit contract may arise between an employer and an employee through the employer`s actions and behaviors. If an employer consistently provides certain benefits or perks, such as flexible work hours or paid time off, without ever explicitly stating that these benefits are part of the employee`s compensation package, a tacit contract may be formed. The employee may come to rely on these benefits and believe that they are entitled to them, even if they were never explicitly stated in a contract.
In a business transaction, a tacit contract may arise when one party consistently acts in a certain way, leading the other party to believe that certain terms are understood and agreed upon. For example, if a supplier consistently delivers products on a certain date and the buyer consistently pays on time, a tacit contract may be formed in which both parties understand and expect these terms to continue without any need for explicit communication.
It`s important to note that tacit contracts are not legally binding in the same way that written contracts are. However, they can still create expectations and obligations that both parties may feel compelled to honor. Additionally, if one party were to break the terms of a tacit contract, it could harm the relationship between the parties and damage their ability to work together in the future.
In summary, a tacit contract is a type of agreement that exists based on the actions and behaviors of both parties. While not legally binding, it can still create expectations and obligations that both parties may feel compelled to honor, and can be an important factor in various types of relationships, including employment and business transactions.
