Ohio Surety Bail Agent Practice Exam

What does an "Implied" contract signify?

1. Explicit agreements recorded in writing

2. Assumed duties and obligations not expressly stated

3. Contracts that are maliciously fraudulent

4. A contract that is entirely performed

The correct answer is: Assumed duties and obligations not expressly stated

An "Implied" contract signifies assumed duties and obligations that are not expressly stated in writing or verbally. The essence of an implied contract is based on the actions, circumstances, or conduct of the parties involved, which create an expectation of agreement or intention to enter into a business relationship or perform duties without formal documentation. For instance, if you go to a restaurant and order food, there is an implied contract that you will pay for the meal even though the agreement to pay is not formally articulated. This concept is crucial because it acknowledges that parties can be bound by agreements that may not be explicitly communicated but are understood through their interactions. The other options represent distinctly different types of contracts. Explicit agreements recorded in writing refer to formalized contracts, which are not implied but rather outlined clearly. Maliciously fraudulent contracts involve deceit and typically do not exist as valid agreements due to their illegal nature. Meanwhile, a contract that is entirely performed indicates completion, rather than focusing on the implied obligations present during the formation of a contract.