66. When there is an agreement between parties that is evidenced by their actions and conduct rather than a written document, it is called a(n):
Answer: C
Implied contract
An agreement between parties that is demonstrated through their actions and conduct, rather than by a formal written document, is referred to as an implied contract.
A) Competent contract
A competent contract refers to an agreement made by parties who have the legal capacity to enter into a contract. This option is incorrect because it does not address the nature of the agreement being based on actions rather than written documentation.
B) Invalid contract
An invalid contract is one that cannot be enforced by law due to various reasons such as illegality or lack of capacity. This option is incorrect as it does not reflect the existence of an agreement supported by the actions of the parties involved.
C) Implied contract
An implied contract arises when the behavior and actions of the parties indicate that they have reached an agreement, even in the absence of written terms. This is the correct answer, as it accurately describes the scenario where conduct serves as the basis for the agreement.
D) Incomplete contract
An incomplete contract is one that lacks certain essential elements or terms that are necessary for enforceability. This option is incorrect because it does not capture the essence of an agreement based on conduct rather than formal documentation.
Conclusion
The correct answer, implied contract, clearly identifies the scenario where an agreement exists based on the actions and behaviors of the parties rather than a written document. All other options fail to accurately describe this relationship, either by mischaracterizing the nature of the agreement or by indicating that no valid agreement exists.