What is meant by an "implied contract"?

An "implied contract" refers to an agreement that is formed not through explicit written or spoken words, but through the actions, behaviors, and circumstances of the parties involved. This type of contract is recognized by law even though specific terms have not been clearly articulated. For instance, if one party performs a service and the other party acknowledges the service and accepts its benefits, an implied contract exists even without formal agreement on the terms.

The essence of an implied contract is that it creates obligations based on the conduct of the parties. A common example is when you visit a restaurant; you may not verbally express a contract, but by ordering food and eating it, you imply an agreement to pay for that service. Therefore, the relationship established by behavior holds legal weight and can be enforced.

In contrast, options describing explicitly stated contracts, verbal negotiations, or unenforceable contracts do not accurately capture the nature of an implied contract, as they relate to different kinds of agreements or legal statuses.