Which type of contract is based on actions or behaviors rather than spoken words?

Study for the Arizona Salesperson Test with flashcards and multiple-choice questions. Each question is paired with helpful hints and detailed explanations. Get ready to ace your exam!

The type of contract that is based on actions or behaviors rather than explicit spoken words is an implied contract. This type of contract is formed through the conduct of the parties involved, where their actions indicate a mutual agreement even without formal, written, or verbal communication.

For example, if you go to a restaurant and order a meal, it is understood that you will pay for the food when it is served. In this scenario, the contract is implied by your actions (ordering and consuming the food) rather than stated explicitly. Implied contracts often rely on assumptions that parties understand the expectations and responsibilities involved based on their behavior and the context of the situation.

In contrast, an expressed contract is one where the terms are clearly stated, either verbally or in writing, leaving no ambiguity about the agreement. Valid contracts meet the necessary criteria to be enforceable by law, while invalid contracts lack one or more essential elements, making them unenforceable.

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