What is an implied contract?

An implied contract is one that is not explicitly stated in writing or verbally; rather, it is established through the behaviors and actions of the parties involved. This type of contract arises from the circumstances and the context in which the parties interact, leading to the understanding that a contract exists even though it hasn't been formally articulated. For example, if you visit a restaurant and order food, an implied contract exists where it is understood that you will pay for the meal after receiving it, even if there is no written agreement.

The essence of an implied contract lies in the mutual agreement and understanding that is inferred from the conduct of the parties rather than a formal declaration. Thus, the correct choice emphasizes the nature of how these contracts come about through actions, rather than written or signed agreements, which aligns perfectly with the definition of an implied contract.