Which type of contract is inferred from the actions of the parties involved?

The correct answer is an implied contract. This type of contract arises not from explicit written or spoken agreements but rather from the conduct, actions, and circumstances surrounding the parties involved. In implied contracts, the intentions of the parties can be determined by their behavior and the situation, leading to the assumption that a contract exists.

For instance, if you go to a restaurant, you typically do not sign or verbally agree to pay for your meal. Instead, you imply a contract through your actions by ordering food and eating it, which implies that you agree to pay for it. Courts often recognize these types of agreements based on the behavior of those involved, ensuring that fairness is maintained even when an explicit agreement is absent.

This contrasts with a written contract, which is documented and provides clear terms agreed upon by the parties. An express contract is one that is clearly stated, either orally or in writing, leaving no doubt regarding the terms. A formal contract usually requires certain formalities, such as signatures or notarization, to be considered valid. Therefore, implied contracts distinctly relate to inferred agreements through action rather than explicit terms.