In contract law, what is the term for a contract that is indicated through actions rather than words?

Prepare for the Funeral Service Education (FSE) National Board Exam with comprehensive resources. Access multiple choice questions, flashcards, and detailed explanations to boost your confidence and improve your knowledge. Ace the exam seamlessly!

An implied contract is formed when the agreement between parties is inferred from their conduct rather than explicitly stated in words. In this context, actions carry the weight of agreement, demonstrating mutual intent even in the absence of verbal or written communication. For example, if you go to a restaurant, order food, and eat, an implied contract is formed that obligates you to pay for that meal, even though there wasn't an overt discussion about the price beforehand.

This concept is fundamental in contract law because it allows for agreements to be recognized and enforced even when they are not formally articulated. This can often apply in everyday transactions or relationships where parties understand their obligations through their behavior and established norms. Understanding how implied contracts operate can be crucial in various scenarios, including those relevant to funeral service education, where expectations may be based on customary practices.

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