What is an implied contract?

An implied contract is defined by the conduct or actions of the parties involved rather than through explicit written or spoken words. This type of contract arises when the behavior of the parties indicates that they have an agreement, even if it is not formally documented. For instance, if someone orders food at a restaurant, their actions imply a contract to pay for the meal, even though no formal agreement has been signed.

This differs from other types of contracts, such as express contracts, which are created through clear, direct communication, whether written or oral. Additionally, a verbal agreement without legal standing does not encapsulate the essence of an implied contract, as implied contracts do hold legal weight based on the circumstances surrounding the agreement. Lastly, an implied contract is not automatically voided; it becomes enforceable based on the implied intentions of the parties involved.