Introductory Business Law CLEP Prep Practice Exam

What type of contract implies conditions based on the fact that the parties are in agreement?

1. Executed contract

2. Unilateral contract

3. Express contract

4. Implied contract

The correct answer is: Implied contract

An implied contract is a type of contract where the terms and conditions are not explicitly stated, but are assumed based on the actions and behaviors of the involved parties. This means that both parties have not discussed or documented the terms, but their actions suggest an agreement. On the other hand, an executed contract refers to a legally binding agreement where the terms and conditions have been fulfilled by both parties. A unilateral contract is a one-sided agreement where only one party makes a promise in exchange for an act or service from the other party. And an express contract refers to a written or verbal agreement where the terms and conditions are explicitly stated between the parties. Therefore, the correct answer for this question is D, an implied contract, as it implies that there is a mutual understanding and agreement between the parties based on their actions and behaviors.