Recognition by the courts of informal contracts, such as implied contracts, has also diminished the importance and employment of formal contracts under seal. In an express contract the parties state the terms, either orally or in writing, at the time of its formation. Although contracts implied in fact and contracts implied in law are both called implied contracts, a true implied contract consists of obligations arising from a mutual agreement and intent to promise that have not been expressed in words. It is misleading to label as an implied contract a contract implied in law because a contract implied in law lacks the requisites of a true contract. The term quasi-contract is a more accurate designation of contracts implied in law.
Implied contracts are as binding as express contracts.
A contract implied in fact is not expressed by the parties but, rather, suggested from facts and circumstances indicating a mutual intention to contract. Circumstances exist that, according to the ordinary course of dealing and common understanding, demonstrate such an intent sufficient to support a finding of an implied contract. An implied in fact contract does not arise contrary to law or the express declaration of the parties. The implication of a mutual agreement must be a reasonable deduction from all the circumstances and relations contemplated by the parties when they enter into the contract or which are necessary to effectuate their intention. No implied promise can exist where the relations between the parties prevent the inference of a contract.