Which statement best illustrates an implied contract situation?

Which statement best illustrates an implied contract situation?

• A. If you are aware and don’t stop someone from accidentally building a deck at the wrong house you legally have to pay
• B. A contract created only by a handshake
• C. A contract that requires a formal written document
• D. A contract that cannot be enforced under any circumstances

Answer: (A)

An implied contract arises from what people do and the circumstances, not from written words or a formal agreement. Here, someone is building a deck at the wrong house, and you’re aware of it but don’t stop them. Your awareness and silence effectively signal consent to the work and the expectation of payment for it, even though there wasn’t a written or spoken contract. This is exactly how an implied-in-fact contract works: payment obligation comes from the conduct of the parties and the benefit conferred, not from an explicit agreement. The other situations involve explicit or formal writing (an express oral contract, a contract that must be in writing) or describe a scenario that isn’t enforceable at all, which don’t illustrate an implied contract formed by conduct.

An implied contract arises from what people do and the circumstances, not from written words or a formal agreement. Here, someone is building a deck at the wrong house, and you’re aware of it but don’t stop them. Your awareness and silence effectively signal consent to the work and the expectation of payment for it, even though there wasn’t a written or spoken contract. This is exactly how an implied-in-fact contract works: payment obligation comes from the conduct of the parties and the benefit conferred, not from an explicit agreement.

The other situations involve explicit or formal writing (an express oral contract, a contract that must be in writing) or describe a scenario that isn’t enforceable at all, which don’t illustrate an implied contract formed by conduct.