What is an “Implied Agreement”?

Posted on: April 5, 2009 by: admin

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The “implied agreement” contemplated by the Dent Act as the basis of compensation, is not an agreement “implied in law,” more aptly termed a constructive or quasi contract, where, by fiction of law, a promise is imputed to perform a legal duty, as to repay money obtained by fraud or duress, but an agreement “implied in fact,” founded upon a meeting of minds, which, although not embodied in an express contract, is inferred, as a fact, from conduct of the parties showing, in the light of the surrounding circumstances, their tacit understanding. Baltimore & Ohio Railroad Company v. United States, 261 U.S. 592, 67 L. Ed. 816, 43 S.Ct. 425 (1923)

The “implied agreement” contemplated by the Dent Act as the basis of compensation, is not an agreement “implied in law,” more aptly termed a constructive or quasi contract, where, by fiction of law, a promise is imputed to perform a legal duty, as to repay money obtained by fraud or duress, but an agreement “implied in fact,” founded upon a meeting of minds, which, although not embodied in an express contract, is inferred, as a fact, from conduct of the parties showing, in the light of the surrounding circumstances, their tacit understanding. See, by analogy, as to the construction of similar jurisdictional statutes, United States v. Berdan Fire Arms Mfg. Co., 156 U.S. 552, 566; Russell v. United States, 182 U.S. 516, 530; Harley v. United States, 198 U.S. 229, 234; United States v. Anciens Etablissements, 224 U.S. 309; 311, 320; United States v. Buffalo Pitts Co., 234 U.S. 228; 232; Tempel v. United States, 248 U.S. 121, 129; and Sutton v. United States, 256 U.S. 575, 581; and, generally, Railway Co. v. Gaffney, 65 Ohio St. 104, 113; Woods v. Ayres, 39 Mich. 345, 350; Hertzog v. Hertzog, 29 Pa. St. 465, 468; Knapp v. United States, 46 Ct. Clms, 601, 643; and 1 Bouv. Dict. (Rawle’s 3d Rev.) 660. Id.

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