What characterizes implied contracts?

Implied contracts are characterized by the fact that their terms are understood without the need for verbal expression or written documentation. This means that the actions or circumstances surrounding a situation can create an understanding between parties that a contract exists. For example, if a person goes to a restaurant and orders a meal, an implied contract is formed based on the expectation that the individual will pay for the meal upon consumption, even though no formal agreement was explicitly stated.

The recognition of implied contracts is rooted in the principle of mutual agreement; if both parties act in a way that suggests they consent to the terms, a binding agreement is established despite the lack of explicit dialogue or written consent. This form of contract is particularly useful in situations where the specifics may not be formally laid out but are nonetheless recognized through conduct and context.