What type of contract is defined as one that is not expressed in words?

Prepare for the DECA Accounting Applications Exam. Utilize flashcards and multiple choice questions with hints and explanations. Start studying now!

An implied contract is a type of agreement that is not articulated through explicit words but rather inferred from the actions, conduct, or circumstances of the parties involved. This means that even though the terms are not stated clearly, the relationship or behavior of the parties can indicate an agreement. For example, if you go to a restaurant and order a meal, there is an implied contract that you will pay for the service once it is provided, even though the exact terms were not verbally discussed.

In contrast, other types of contracts, such as verbal, written, or express contracts, involve explicit terms that are clearly stated either in spoken or written form. A verbal contract relies on spoken agreements, while a written contract is formally documented. An express contract is one where all terms are clearly defined either in writing or verbally. Thus, the nature of an implied contract is unique as it does not require formal declarations to be considered legally binding.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy