Louisiana Bail Bonds Practice Exam

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What does an implied contract rely on?

Explicit written terms only
Actions and words of the involved parties
Legal counsel recommendations
External witnesses only

The correct answer is: Actions and words of the involved parties

An implied contract relies on the actions and words of the involved parties to establish the agreement between them, rather than explicit written terms. In such contracts, the intentions and obligations of the parties are inferred from their conduct, circumstances, and context of their interaction. Implied contracts are recognized by law based on how the parties behave and the understanding reached through their interactions, even when no formal document is created. For instance, if you go to a restaurant and order food, it is understood that you will pay for the meal after consuming it. This expectation is based on the behavior of both parties rather than a written contract. Therefore, the relationship between the parties, demonstrated through their behaviors and communications, is what establishes the implied contract.