Louisiana Bail Bonds Practice Exam

What type of contract is formed through non-verbal agreements?

1. Implied Contract

2. Express Contract

3. Written Contract

4. Unilateral Contract

The correct answer is: Implied Contract

The type of contract formed through non-verbal agreements is an implied contract. An implied contract arises from the actions, conduct, or circumstances of the parties involved rather than from explicit words or written terms. This means that even if the parties did not verbally express their intentions, their behavior may create an obligation to fulfill certain terms that are generally understood. For example, when a person goes to a restaurant and orders a meal, there is an implied contract that they will pay for the service and food provided, even though there is no formal agreement or written contract. The expectation of payment for the meal is understood by both parties based on customary practices in that situation. This contrasts with express contracts, which are clearly stated through verbal or written communication, and written contracts, which are documented and signed by the parties. Unilateral contracts involve one party making a promise in exchange for a specific action by another, which may or may not align with non-verbal agreements. Thus, understanding the nature of implied contracts is crucial in recognizing how agreements can form based on behavior and circumstances without explicit communication.