What is an implied contract?

An implied contract is a legal agreement that is not explicitly stated in words but is inferred from the actions, conduct, or circumstances of the parties involved. This type of contract arises when one party's behavior indicates an intention to enter into a contract and the other party understands that intention based on those actions. For example, when a person orders food at a restaurant, there is an implied contract that they will pay for the meal upon being served.

In contrast, a contract with written terms involves explicitly defined obligations and conditions laid out in a document, which does not encompass the essence of an implied contract. Notarization is not a requirement for implied contracts, as such agreements do not need a notary to be enforceable. While oral contracts can exist separately, not all oral contracts are implied; some may be explicitly stated as verbal agreements. Therefore, the defining characteristic of an implied contract is its basis in the actions and circumstances surrounding the parties involved, which makes it distinctly different from the other options listed.