A contract formed by the parties' actions and conduct rather than written or spoken words is called?

• A. Written Contract
• B. Implied Contract
• C. Express Contract
• D. Oral Contract

Answer: (B)

An implied contract is formed by the parties’ actions and conduct rather than by written or spoken words. It happens when what each party does creates a reasonable understanding that an agreement exists and that performance and payment are expected, even without explicit terms stated. For example, if you receive a service and there’s no written or spoken agreement, your accepting and benefiting from the service (and the provider continuing to perform) signals that you intend to pay and that the provider intends to be compensated. The terms aren’t spoken or written but are inferred from the surrounding circumstances and the behavior of the parties.

This is different from a written contract, which relies on a document with terms; or an oral contract, which relies on spoken words to form the agreement; or an express contract, where the terms are clearly stated in words. There’s also the related concept of implied-in-law or quasi-contract, which isn’t a true contract formed by mutual agreement but a court-imposed obligation to prevent unjust enrichment.