What term describes an agreement shown by the actions of the parties involved rather than their words?

An implied agreement refers to an understanding that is formed through the actions or behaviors of the parties involved, rather than through explicit verbal or written communication. This type of agreement arises when the actions of the parties indicate a mutual intention to enter into a contract, even if no formal agreement has been articulated. For instance, if a person orders food at a restaurant and consumes it, their actions imply an agreement to pay for the meal, even though no spoken or written contract was exchanged.

In contrast, an express agreement is one that is clearly stated—either verbally or in writing—where all parties explicitly agree to the terms. A verbal agreement is limited to spoken words, while a written agreement involves formal documentation. These options highlight forms of agreements based on direct communication rather than the implicit understanding that characterizes an implied agreement.