Opinion ID: 1511669
Heading Depth: 3
Heading Rank: 3

Heading: The Implied-in-Fact Contract

Text: A second basis for recovery is advanced in Nicholson's behalf  the implied-in-fact contract. Generally, an implied contract is one which is inferred from the conduct of the parties; it is not necessarily expressed in words. Judd v. Heitman, 402 F. Supp. 929 (M.D.Tenn. 1975). A promise will not arise by implication, however, when the circumstances and facts from which the promise would be drawn are contrary or completely inconsistent with the contract to be implied. 17 Am.Jur.2d Contracts § 3 (1964). Nor may a contract be implied in fact in the face of a declaration to the contrary by the party to be charged. Travelers Ins. Co. v. Williams, 541 S.W.2d 587 (Tenn. 1976). If a contract may be implied, then a commitment to pay reasonable compensation is also implied. This promise to pay is implied where a person works for another, with the latter's knowledge, and the work is useful and normally would be compensated and where the person for whom the work is being done does not object or accepts the services rendered. See, e.g., Murray v. Grissim, 40 Tenn. App. 246, 290 S.W.2d 888 (1956). Thus a promise to pay will only be implied when the work was performed under circumstances in which a person could reasonably expect to be compensated by the party benefited. The conduct or words of the person who receives the benefit of this work must be such that one could fairly infer a promise to pay. See, e.g., Nashville Breeko Block and Tile Co. v. Hopton, 29 Tenn. App. 394, 196 S.W.2d 1010 (1946). From the circumstances of this case we imply a contract for the extra work performed by Nicholson, and we conclude that both Transcon and JCLHC are liable for the sum owing.