What is an implied contract based on?

An implied contract is primarily based on the acts and conduct of the parties involved rather than explicitly stated written agreements or formal declarations. This type of contract arises when the actions of the parties indicate that they have reached an agreement, even if there is no formal or written documentation.

For example, if a person goes to a restaurant, sits down, and orders food, the actions of ordering and consuming the food imply a contract for payment, even if no written agreement was signed. The expectations and understandings created by these actions suggest that both parties have engaged in a contractual relationship.

In contrast, written agreements and formal declarations typically characterize explicit contracts that clearly outline the terms. Specific negotiations, while they may lead to a contract, are distinct from the behavior that forms the basis of an implied contract. Thus, the essence of an implied contract lies in the behavior and actions that suggest mutual consent and agreement.