Louisiana Bail Bonds Practice Exam

Which type of contract is recognized based on the conduct of the parties?

1. Formal contract

2. Bilateral contract

3. Implied contract

4. Unilateral contract

The correct answer is: Implied contract

An implied contract is recognized based on the conduct of the parties rather than a written or spoken agreement. This type of contract arises when the actions of one or both parties suggest an agreement exists or obligations are to be met, even when no formal communication has taken place. For example, if a person orders food in a restaurant, their actions imply an agreement to pay for the meal, regardless of whether a specific conversation about payment occurred. The distinction makes implied contracts unique; they fill the gaps in situations where formal agreements may not be present, yet the behavior of the parties demonstrates an understanding of their commitments. This highlights the significance of context and behavior in establishing an agreement, which is central to how implied contracts operate. Other types of contracts, such as formal, bilateral, and unilateral contracts, are characterized by specific criteria that involve explicit agreements or conditions rather than being established solely through conduct.