What is a contract created through the actions of the parties rather than by an express agreement?

A contract created through the actions of the parties rather than by an express agreement is known as an implied contract. An implied contract is formed when the circumstances of the parties' behavior indicate that they have reached an agreement without explicitly stating the terms. This often occurs in situations where the actions of one party suggest acceptance of an obligation, and the other party acts in reliance on that understanding.

For example, if a person goes to a restaurant, orders food, and eats it, there is an implied contract that they will pay for the meal, even though no formal agreement was made beforehand. The expectations and conduct of the parties demonstrate their intent to enter into a binding agreement based on their actions.

In contrast, an express contract is clearly stated, either verbally or in writing, and involves explicit terms agreed upon by both parties. A verbal agreement, while it can often relate to express contracts, does not cover the broader scenario of implied contracts derived from actions. Written agreements, on the other hand, refer specifically to contracts that are documented in writing and signed by the parties involved. Thus, the defining characteristic of an implied contract is its foundation in the behavior and circumstances surrounding the parties involved, rather than in their explicit mutual consent.