implied contract

implied contract definition - business

implied contract

An agreement in which the terms are assumed but not explicitly stated. An example of an implied contract is the implied warranty accompanying the purchase of a product that the product should perform as a reasonable buyer would expect. For example, a lawnmower is sold with an implied contract that it will cut grass. Compare express contract.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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