When a rainstorm erupts outside Rita's Clothing 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

Question

Quizplus · Accepted Answer

An implied contract is created by the conduct of the parties, rather than by explicit agreement, and the terms are defined by that conduct. In this case, the conduct of Rita and Shaw in splitting the revenue from the sale of umbrellas to Rita's customers creates an implied contract with specific terms. The words or subjective intent of the parties are not necessarily relevant to the creation of this contract. The rainstorm may have given rise to the opportunity for the contract, but it does not define the terms of the contract itself.

When a Rainstorm Erupts Outside Rita's Clothing Shop, Rita and Shaw