Which contract refers to terms that are inferred from the conduct of the parties rather than written or spoken words?

• A. Implied contract
• B. Express contract
• C. Bilateral contract
• D. Unilateral contract

Answer: (A)

Terms inferred from the conduct of the parties rather than spoken or written words describe an implied contract. This happens when actions and surrounding circumstances show that the parties intended to form an agreement, even though there’s no explicit written or verbal promise. For example, if someone pays for a service after it’s provided, or accepts goods or benefits with an expectation to pay, the law can treat those actions as evidence of a contract. The key idea is that the agreement is proven by what people do and the context, not by what they say or write.

Express contracts are formed by explicit terms stated in words or writing, which is the opposite of implying terms from conduct. Bilateral and unilateral refer to how promises are exchanged—two-way promises in a bilateral contract or a promise in return for an act in a unilateral contract—neither term implies the contract’s terms come from conduct in the same way.