Implied covenants in contracts are legal obligations that are not explicitly stated but are still inherent in the agreement. These covenants arise from the parties` intent or the presumed intention of the law, and they can be just as binding as express promises.
Implied covenants can take many forms, but they generally fall into two categories: those that arise from the parties` relationship and those that arise from the law. The former includes covenants of good faith and fair dealing, while the latter includes covenants of legality and conscionability.
Covenants of good faith and fair dealing require the parties to act in good faith and deal fairly with each other. This means that they should not take advantage of each other or engage in behavior that undermines the other`s ability to benefit from the contract. For example, if a landlord rents a property to a tenant, the landlord is required to maintain the property and make any necessary repairs, while the tenant is required to pay rent on time. These obligations are implied in the lease agreement and are necessary for the contract to function as intended.
Covenants of legality and conscionability, on the other hand, ensure that the contract is not illegal or unconscionable. A covenant of legality means that the parties are not allowed to enter into a contract that violates the law. For example, a contract that requires someone to perform an illegal act is unenforceable. A covenant of conscionability, on the other hand, requires that the terms of the contract be fair and reasonable. If a contract is so one-sided that it is oppressive or unfairly burdens one party, a court may refuse to enforce it.
In conclusion, implied covenants are an important aspect of contract law that ensure that agreements are fair, reasonable, and legally enforceable. As a copy editor, it is important to understand these concepts to accurately communicate them to your readers. By doing so, you can help businesses and individuals ensure that their contracts are enforceable and protect their rights and interests.
