Which term describes a contract formed by the conduct of the parties rather than written terms?

• A. Expressed contract
• B. Quasi contract
• C. Oral contract
• D. Implied contract

Answer: (D)

Implied contract describes an agreement formed by conduct and surrounding circumstances rather than by written terms. When parties act in a way that shows they expect a contract to exist—such as receiving services and paying a reasonable fee—the law recognizes that a contract has been formed, even though no written or spoken terms exist.

Expressed contracts have terms stated in words, either in writing or orally, so the terms are explicitly known. An oral contract is simply a form of express contract where the terms are spoken rather than written. A quasi contract is not a true contract formed by agreement; it’s a court-imposed obligation to prevent unjust enrichment when no contract exists. Therefore, the description best matching “formed by conduct rather than written terms” is an implied contract.