An Implied Contract is defined as:

An Implied Contract is defined as:

• A. A contract defined by explicit terms
• B. The contract is implied by actions, like taking a taxi you will pay the driver
• C. A contract that is illegal
• D. A contract that requires a deed

Answer: (B)

Implied contracts form from what people do and the circumstances around them, not from explicit words or written terms. When you ride in a taxi, you naturally expect to pay for the ride, and that expectation creates an obligation even if there’s no signed agreement. The contract is inferred from your conduct and the typical business practice, not from a written or spoken promise. This contrasts with an express contract, where the terms are clearly stated in writing or spoken words. It’s also not related to illegality or the need for a deed; those are about different aspects of a relationship, while an implied contract is about how an agreement is formed based on actions and context.

Implied contracts form from what people do and the circumstances around them, not from explicit words or written terms. When you ride in a taxi, you naturally expect to pay for the ride, and that expectation creates an obligation even if there’s no signed agreement. The contract is inferred from your conduct and the typical business practice, not from a written or spoken promise.

This contrasts with an express contract, where the terms are clearly stated in writing or spoken words. It’s also not related to illegality or the need for a deed; those are about different aspects of a relationship, while an implied contract is about how an agreement is formed based on actions and context.