What are implied terms in a contract?

Implied terms in a contract refer to those terms that exist even though they are not explicitly articulated within the contract. These terms can arise from various sources, such as the nature of the relationship between the parties involved, statutory provisions, or common law. For example, in many jurisdictions, certain obligations may be automatically understood to be part of the contract to ensure fairness and protect the parties' interests, even if they are not specifically mentioned.

When implied terms are invoked, they help guide the interpretation and enforcement of the contract, thereby providing a clearer framework for the parties' responsibilities and expectations. This is crucial for maintaining the integrity of agreements, especially in complex transactions where all details may not be explicitly covered.

The other options focus on aspects that do not accurately describe implied terms. Explicitly stated terms refer to those clearly outlined in the contract itself, while the reference to verbal agreements is more related to oral contracts, which can have different legal considerations. Additionally, the idea that terms can be ignored during disagreements misrepresents the role of both implied and explicit terms, as they both have legal weight in contract enforcement.