Implied Covenant Law and Legal Definition

An implied covenant is one inferred or implied in law to effectuate the intention of the parties from the words used. Implied covenants on the part of a lessor or a lessee may arise when there is a satisfactory basis in the express contract of the parties which makes it necessary to imply certain duties and obligations to effect the purposes of the parties to the contract made, but such covenants can be justified only upon the ground of legal necessity arising from the terms of a contract or the substance thereof. [Johnson v. Missouri-Kansas-Texas R.R. Co., 216 S.W.2d 499 (Mo. 1949)].