Which term describes a contract formed when assent is inferred from conduct?

• A. An implied-in-fact contract.
• B. A unilateral contract.
• C. A formal contract.
• D. A quasi-contract.

Answer: (A)

Assent inferred from conduct means the agreement is shown by what the parties do, not by what they say or write. When the surrounding circumstances demonstrate that both sides intended to contract, the law treats the agreement as existing even without an explicit written or spoken promise. This is an implied-in-fact contract: the facts and conduct create a mutual understanding that binds the parties.

A meal order and payment scenario is a good illustration: you eat, the restaurant serves you, and you pay. Your payment signals assent to the terms and creates an enforceable contract even though there was no formal agreement.

This differs from a unilateral contract, where acceptance occurs specifically through completing the requested act in response to an offer, rather than broadly inferred conduct. It also differs from a quasi-contract, where a court imposes a duty to prevent unjust enrichment even in the absence of any agreement. And it’s not a formal contract, which requires a particular formality.

So, the term describing a contract formed when assent is inferred from conduct is an implied-in-fact contract.