Questions: Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?
Transcript text: Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?
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Solution

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Answer

The answer is Implied.

Explanation
Option 1: Express

An express contract is one where the terms are clearly stated, either orally or in writing. In this case, there is no written or explicitly stated agreement between Sal and Sam.

Option 2: Parol

A parol contract refers to an oral agreement that is not written down. While Sal and Sam's arrangement could be considered oral, the term "parol" is not the most accurate description for their situation.

Option 3: Implied

An implied contract is formed by the actions, behavior, or circumstances of the parties involved, rather than written or spoken words. Since Sal has consistently ordered shrimp from Sam every Friday for five years and paid the market price, their ongoing business relationship suggests an implied contract. This type of contract is recognized by the consistent conduct of both parties over a significant period.

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