Question

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.

Answer 1

Answer is option A, i.e. the conduct of the parties.

Step-by-step explanation:

When any implied contract is manifested, then there exist a contract between Rita and Shaw in the form of conduct of the parties. These type of contracts mostly occurs when there arise any unexpected situation and in response to the surrounding environment.