Difference between contract implied in fact and contract implied in law


Contract implied in fact: A contract where one of the parties has performed in reliance on a factual understanding between the parties, and then wishes to enforce the promise that was given in exchange for his performance. Also called contract implied by conduct.

Contract implied in law: A contract created by the court in the absense of a contract in order to compensate the provider of some services and prevent unjust enrichment.