Which term describes an agreement that results from the actions or conduct of the parties?

An implied contract is formed through the actions or conduct of the parties involved, rather than through a written document or explicit verbal agreement. This type of contract is created when a person's behavior or circumstances suggest that they have agreed to certain terms, even if there is no formal agreement in writing. For example, when you go to a restaurant and order food, you are implicitly agreeing to pay for the meal based on your actions—sitting down, ordering, and consuming the food.

In contrast, written contracts require the terms and conditions to be explicitly set down in a document, making clear agreements that do not rely on actions or implied understandings. An executed contract refers specifically to a contract that has been fully performed by all parties, while a formal contract is a legally binding agreement that requires specific formalities to be valid, such as notarization. Therefore, the unique characteristic of an implied contract is its foundation in conduct, distinguishing it from the other types of contracts listed.