Long gone are the days of verbal agreements over a friendly handshake. Now a contractor needs a written contract to ensure payment for services rendered. However, what if no paperwork exists proving the client authorized additional work? Can a contractor still get paid? The answer is maybe. If the contractor can find enough non-documentary evidence to show the person who verbally requested the work has actual authority to enter into contracts on behalf of the client, a contractor may be able to recover payment under an implied-in-fact contract.
What is an implied-in-fact contract? Implied-in-fact contracts are based on the situation’s facts, circumstances or conduct of the parties involved, which creates an obligation between the two parties. For example, if a contractor is paid for something each week but it is not in writing, the contractor may be able to claim they have a contract with the other party and a reasonable expectation that they will be paid for their service going forward.
In the below motion against the contractor’s appeal, the Marine Expeditionary Force Training and Experimentation Group within the U.S. Marines’ Advisor Training Cell (Client) motioned the Armed Services Board of Contract Appeals (ASBCA) for a summary judgment, essentially requesting the contractor’s appeal be thrown out.
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