What type of contract arises from the actions of the parties involved?

A contract that arises from the actions of the parties involved is known as an implied contract. Implied contracts are formed based on the behavior and circumstances of the parties rather than explicitly stated terms. These contracts exist when the conduct of the parties suggests a mutual agreement even if there is no formalized agreement in writing or spoken words.

For instance, if a person goes to a restaurant, orders food, and eats it, an implied contract is established that the person will pay for the meal. In this case, the actions of dining and ordering imply an agreement to pay, even though it was not explicitly discussed. This distinguishes implied contracts from expressed contracts, which are clearly articulated by the parties involved.

The correct identification of an implied contract is crucial in understanding how agreements can form through actions and conduct, reflecting the expectations and responsibilities inherent in social and commercial transactions.