Contracts/Implication-in-fact

There is an implied in fact contract when the circumstances of the case and the circumstances surrounding the fact indicate than an agreement have been reached. This implied in fact contract is inferred by the court from the conduct of the parties.

Landsberg v. S&R – In the Landsberg case, Landsberg wrote a book about strategy for ScrabbleTM. He approached the makers of Scrabble to use the trademark, they asked him to read the book, then stole it. There was no express offer, acceptance, and consideration. Landsberg sued and the court found that there was an implied contract.

An Implied in Fact Contract for the payment of receiving a valuable idea is found when the recipient receives the information and uses it without paying for it even though he knows that compensation should be received for it.