What is an implied contract?

• A. Legally enforceable based on proven facts, the behavior of the parties, or principles of equity & fairness.
• B. A formal written agreement.
• C. A contract that can never be enforced.
• D. A contract requiring a witness.

Answer: (A)

An implied contract is formed without a written or spoken agreement; it is inferred from the surrounding facts and the parties’ conduct, showing that a binding agreement was intended. This can happen when services are provided or benefits are conferred with an expectation of payment, and a reasonable person would conclude that a contract exists. There are two forms: implied-in-fact contracts, where the agreement is inferred from actions and circumstances; and implied-in-law (quasi-contract), where a court imposes a duty to pay to prevent unjust enrichment even without any agreement. The statement describing it as legally enforceable based on proven facts, the behavior of the parties, or principles of equity and fairness best captures this concept. It is not simply a formal written agreement, nor must there be a witness, and it can be enforceable when the facts support an implied contract.