Can a contract be implied in fact in Texas?

In Texas, a contract can indeed be implied in fact based on the conduct and circumstances of the parties involved. This type of contract arises from the actions, behavior, or circumstances of the parties that suggest they intended to create a binding agreement even though it was not explicitly stated. Courts in Texas look at factors like the conduct of the parties, the existing relationship between them, and the overall context of their interactions to determine whether an implied contract exists.

Implied contracts are particularly important in scenarios where formal agreements may not exist but the parties’ behavior indicates they have mutually consented to certain terms. For example, if a person consistently performs a service for another without an explicit contract, and the other person accepts and pays for those services, an implied contract can be recognized even though no written or oral agreement was made.

The notion that all contracts must be explicitly stated simply does not reflect the principles of Texas law, which acknowledges the validity of implied agreements. Similarly, the idea that implied contracts are not recognized at all contradicts the foundational legal principles that govern contract formation. Finally, the suggestion that implied contracts are only applicable in certain industries overlooks the broader application of implied contracts across various contexts where parties exhibit affirmative conduct that indicates a mutual agreement.