Leasing License Practice Exam

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What type of contracts are inferred by someone's actions?

Implied contracts
Bilateral contracts
Unilateral contracts
Express contracts

The correct answer is: Implied contracts

Implied contracts are those that are established through the actions or circumstances of the parties involved rather than through explicit written or spoken agreements. When a person engages in certain behaviors or actions, a contract can be formed even if they did not verbally agree to the terms. For instance, if a customer orders food at a restaurant, it is understood that they agree to pay for the service, even though no formal contract has been signed. In contrast, bilateral contracts involve mutual promises between two parties, where both sides have a clear agreement to fulfill their respective obligations. Unilateral contracts consist of a promise from one party that the other party accepts through their actions, rather than a mutual exchange. Express contracts are those that are explicitly stated, either orally or in writing, and do not rely on inferred actions. Thus, the defining characteristic of implied contracts is that they arise from behavior, making them distinct from the other types of contracts listed.