What term describes a contract in which terms are implied by the actions or conduct of the parties involved?

An implied contract is characterized by the formation of obligations based on the actions or conduct of the parties, rather than through explicit written or spoken agreements. This type of contract arises when the behavior of individuals suggests that they agree to certain terms, even if no formal or direct communication of those terms has taken place.

For example, when someone orders food at a restaurant and consumes it, an implied contract exists where the customer agrees to pay for the meal in exchange for the service provided, even though there was no spoken agreement outlining the cost beforehand.

This understanding contrasts with other types of contracts. An oral contract involves clear terms communicated verbally, while a written contract contains all terms set down in writing. An express contract, similarly, is one where terms are explicitly stated, either in writing or verbally. Thus, the defining characteristic of an implied contract is its reliance on the conduct of parties to determine the agreed-upon terms, which is pivotal in various transactional contexts.