Which of the following best defines an implied contract?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

An implied contract is best defined as one formed by the behaviors or circumstances of the parties involved, rather than being explicitly stated in writing or verbally agreed upon. In Texas contract law, implied contracts arise when the parties' conduct suggests that they have mutually agreed to certain terms, even if those terms are not formally articulated.

For example, if a person visits a hair salon and receives a haircut, there is an implied contract that they will pay for the service, even though there may be no written or explicit oral agreement detailing the price or terms of payment.

This concept underscores how the actions of the parties can establish a binding agreement. The clarity of this definition indicates that the presence of mutual consent, as evidenced by behavior, is sufficient to create a contract, emphasizing how practical interactions in daily life can lead to legally enforceable agreements.

In distinguishing this from other options, it is clear that contracts explicitly stated in writing do not fall under the definition of implied contracts, nor do contracts created after a lawsuit, as those are typically defined within the context of litigation rather than ongoing interactions. Additionally, a non-binding agreement between friends lacks the essential elements of enforceability and does not typically reflect the criteria that might establish an implied contract.

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