Which contract concept is formed from the parties' conduct and surrounding circumstances rather than explicit words?

• A. Implied-in-law contract
• B. Express contract
• C. Implied contract
• D. Unilateral contract

Answer: (C)

An implied contract is formed by the parties’ conduct and surrounding circumstances rather than explicit words. When actions and the situation show an agreement—like receiving services and paying for them or accepting benefits with an expectation of payment—the law treats a contract as having been created even without a written or spoken agreement. This differs from an express contract, where the terms are stated in words. It also differs from implied-in-law (quasi-contract), which is created by a court to prevent unjust enrichment, not by the parties’ conduct. A unilateral contract is formed when one party’s promise is exchanged for performance, not simply by conduct indicating agreement.