What is an implied contract?

An implied contract is defined by the actions and conduct of the parties involved rather than through explicit written or spoken words. When parties engage in a situation where their behaviors and actions suggest an agreement exists, this forms an implied contract. For example, if a person enters a restaurant, orders food, and consumes it, their actions imply a contract to pay for that meal even though no formal agreement was established beforehand.

This concept is distinct from the other choices presented. Written agreements refer to express contracts, which specify terms clearly in writing. An oral contract, while a valid form of agreement, is also an express type and requires clear communication between the parties. A legally binding contract enforced by the court covers both implied and express contracts but does not specifically define the nature of an implied contract itself, which is primarily about the behavior of the parties involved. Thus, option B accurately captures the essence of what constitutes an implied contract.