An implied duty within an agreement, established by courts to ensure fairness, dictates that one party’s performance is dependent on the other party’s fulfillment of a prior obligation. For instance, in a building contract, the contractor’s obligation to complete the structure is often contingent upon the property owner’s timely provision of the building site and necessary materials. This type of dependency is not explicitly stated but inferred from the nature of the agreement.
This legal principle promotes equitable outcomes by mitigating the risk of one party being compelled to perform while the other remains in default. It safeguards against unjust enrichment and ensures that parties receive the agreed-upon exchange of value. The development of this doctrine reflects a historical shift toward recognizing the practical realities of contractual relationships, moving beyond strict adherence to the literal terms and accommodating implied understandings crucial for effective collaboration.
