When a rainstorm erupts outside Rita's Souvenir & Gift Shop,Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by
A)the conduct of the parties.
B)the words of the parties.
C)the unforeseeable storm that gave rise to the deal.
D)the unexpressed subjective intent of the parties.

Question

Quizplus · Accepted Answer

In an implied contract, the terms are defined by the conduct of the parties and their actions rather than by their words or subjective intent. In this scenario, Rita and Shaw's conduct in splitting the revenue from umbrella sales shows an agreement between them. The rainstorm was merely the circumstance that led to the contract, but the actual agreement was defined by their conduct.

When a Rainstorm Erupts Outside Rita's Souvenir & Gift Shop,Rita