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How to use contract in a sentence. An implied contract is distinguished from an "express contract." implied covenant of good faith and fair dealing n.In certain circumstances, an implied contract may be created. Ratification of a contract entails the same elements as formation of a new contract. If one of the parties fails to keep the promise, the other is entitled to legal redress. Although it is true there is no contract, the law implies a contract for the value of the material: of course you will have to pay for what you got and took.