A tacit contract can also be created by the behaviour of the parties so far. For example, a teenager offers to walk a neighbor`s dog and is rewarded with two movie cards. On three other occasions, the teenager comes to walk the dog and receives two movie cards. But on the last occasion, the neighbor does not produce the cinema cards. The teen has a case of the neighbour having established an unspoken contract by regularly producing movie tickets in exchange for dog walking services. That`s a reasonable assumption. In these cases, the intention to create legal relations is generally accepted and the contract is formed. However, the explicit terms cannot be the entirety of the contract. Many people think that oral treaties are not legally binding, but that is not really the case.
Most forms of oral contracts are recognized by the courts, with only certain types of contracts having to be written down to be applied. States are different in terms of the types of contracts that need to be entered into in writing, but it is generally accepted that the following types of contracts are concluded in writing and not verbally: it can also include conditions in the treaty, as any explicit contract. But even in a situation where a written contract is not necessary, it is always a good idea to create one. A written contract will then have more weight than an oral contract in the event of a dispute over a service rendered or the sale of a product. Often, oral contracts are in trouble – not as a dispute over the existence of a contract, but on the concrete details of the agreement. An example of a tacit contract in court involved a case in which a potential screenwriter believed that one of his ideas had been stolen by a major television station. Here, Larry Montz, a parapsychologist, submitted several ideas to the NBC network, in the hope that at least one would be accepted for production on a television show. NBC responded to Montz by stating that it was not interested in the ideas it had presented. Three years later, however, the network produced the hit television show Ghost Hunters – whose premise, according to Montz, was very similar to his idea. In another example, every time it snows, a neighbor shovels an older man, and each time the man gives him 10 dollars. After this has happened four or five times, the man stops paying.
If the boy were to take a case to court, the judge would probably rule in his favour, since both parties involve a contract by fact of their original acts. The courts will examine the conduct of both parties to determine whether there is a tacit contract. This type of contract is automatically imposed by law in a situation between two parties, even if they do not intend to enter into an agreement. When one party receives unjustified benefits to the detriment of another party, restitution is paid for the products, services or other services concerned. To establish the existence of a tacit contract, it is necessary to show a clear offer, clear acceptance, mutual intention to be bound and reflection. However, these elements can be established by the behaviour of the parties and not by explicit written or oral agreements. You cannot identify an explicit agreement in business relationships (see the different types of express contract above: oral/written/partially oral, partly in writing). A tacit contract also arises from the circumstances of the parties to an agreement.