Also known as:agreements implied in law · quasi-contract · contract implied in law
Written by attorneys · grounded in primary & secondary sources — see below
An obligation imposed by law to prevent unjust enrichment when one party has conferred a measurable benefit on another. The obligation binds the parties regardless of their actual intent or assent. Courts impose it as a quasi-contract remedy rather than finding an agreement implied in fact from the parties' conduct.
Sources & Authorities
How it applies
Common Examples
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Recovery After Broken Engagement
Andre Antoine promised to marry Ariana Azizi and encouraged her to leave her job and manage his shipping business without pay while paying off a company loan. After she completed the work, Andre called off the wedding. A court imposes an agreement implied in law to require Andre to compensate Ariana for the value of her labor and payments, even though the parties never formed an enforceable contract for those services.
Property Division After Cohabitation
Alfred Ashford and Anita Ali lived together for years while jointly building a home on land titled only in Alfred's name. When the relationship ended, Anita sought a share of the increased property value. The court imposes an agreement implied in law requiring Alfred to pay Anita the reasonable value of her contributions, binding him regardless of whether the parties ever assented to any formal division agreement.
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Common Law
Casebooks
Marvin v. Marvin557 P.2d 106 (Cal. 1976)
Compensation for Land Improvements
Anika Anand permitted Atlas Ventures to install permanent infrastructure on her property under a lease later avoided for mutual mistake. After avoidance, Atlas sought recovery for the value of the roads and foundations. The court imposes an agreement implied in law requiring Anika to pay the reasonable value of the benefit retained, even without any mutual assent to compensation terms.
City of Monterrey v. Del Monte Dunes at Monterrey, Ltd.526 U.S. 687, 734 (1999)
Reimbursement for Educational Support
Abigail Alvarez supported her spouse Alfred Ashford through graduate school by working full time and covering household expenses. Upon divorce, Abigail sought compensation for the increase in Alfred's earning capacity. The court imposes an agreement implied in law requiring Alfred to reimburse Abigail for the value conferred, binding the parties irrespective of any actual agreement on repayment.
In re Marriage of Graham574 P.2d 75, 77 (Colo. 1978)
Common questions
Frequently Asked
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How does an agreement implied in law differ from a contract implied in fact?+
An agreement implied in law is imposed by courts to prevent unjust enrichment and binds the parties regardless of their assent. A contract implied in fact arises from the parties' actual conduct showing mutual intent to agree. Courts use the former when no real agreement exists but one party has conferred a benefit that equity requires compensating.
Supporting sources
When will a court impose an agreement implied in law in a family dissolution context?+
A court imposes an agreement implied in law upon permanent separation when the parties relied on each other and both contributed to the relationship. Recovery rests on the nature of the relationship rather than any real or fictitious contract. This approach follows the ALI Principles of the Law of Family Dissolution.
Supporting sources
Can restitution be awarded under an agreement implied in law when no enforceable contract exists?+
Yes. Restitution measured by the reasonable value of the benefit conferred is available even without an enforceable contract. The remedy prevents the recipient from retaining the value of part performance or reliance without payment.
Supporting sources
557 P.2d 106 (Cal. 1976)Property
…in Keene v. Keene (1962) 57 Cal.2d 657 [21 Cal. Rptr. 593, 371 P.2d 329], the claimant forwent reliance upon theories of contract implied in law or fact. Asserting that she had worked on her partner's ranch and that her labor had enhanced its value, she confined her cause of action to the claim that the court should impress a…