What characterizes an implied contract?

An implied contract is characterized by the actions or behaviors of the parties involved, rather than a formal agreement expressed in writing or spoken words. This type of contract arises when there is an understanding or expectation that both parties will act in a certain manner, creating mutual obligations even without explicit terms being written down or verbally communicated.

For example, if you go to a restaurant and order a meal, it is understood that you will pay for that meal once it has been served, even though no formal contract was drawn up. The expectation to pay is inferred from the conduct of both parties – your action of ordering a meal and the restaurant's action of providing it.

In contrast, contracts made solely in writing, formal contracts witnessed by a third party, or those requiring signatures are all examples of express contracts. These contracts have clear terms laid out either in written form or through formal processes, which is distinctly different from the nature of implied contracts.