When there is an agreement between parties that is evidenced by their actions and conduct rather than a written document, it is called a(n):

Rationale

When there is an agreement between parties that is evidenced by their actions and conduct rather than a written document, it is called an implied contract.

An implied contract is formed through the behavior and actions of the parties involved, indicating their intention to be bound by certain terms without a formal written agreement. This type of contract is recognized in law based on the circumstances surrounding the interactions of the parties.

A (competent contract) YOUR ANSWER

A competent contract refers to an agreement made by parties who have the legal capacity to enter into a contract, such as being of legal age and sound mind. This term does not pertain to the nature of the agreement being evidenced by actions rather than written documentation, making it irrelevant to the question.

B (invalid contract) YOUR ANSWER

An invalid contract is one that is not legally enforceable due to reasons such as lack of capacity, legality, or mutual consent. This choice does not describe an agreement formed by conduct and actions; rather, it indicates an absence of a valid agreement altogether, which is contrary to the definition of an implied contract.

C (implied contract) CORRECT

This choice accurately captures the essence of the question, where an agreement is established through the actions and conduct of the parties involved, rather than through a formal written document. Implied contracts are recognized by law based on the conduct of the parties that suggests an agreement.

D (incomplete contract) YOUR ANSWER

An incomplete contract typically refers to an agreement that lacks essential terms or details needed for full enforceability. While it may involve an agreement between parties, it does not specifically address the concept of an agreement formed through actions rather than written evidence, and therefore does not fit the definition provided in the question.

Conclusion

An implied contract is a legally recognized agreement that arises from the actions and behaviors of the parties, highlighting their mutual intentions without the necessity of formal writing. This distinguishes it from other contract types that either lack validity, are incomplete, or require a competent legal capacity. Understanding implied contracts is crucial in scenarios where parties act upon an agreement without formalizing it in writing.

When there is an agreement between parties that is evidenced by their actions and conduct rather than a written document, it is called a(n):

When there is an agreement between parties that is evidenced by their actions and conduct rather than a written document, it is called an implied contract.

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