What are implied terms in a contract?

Implied terms in a contract refer to those provisions that are not expressly stated but are understood to be part of the agreement due to the nature of the business relationship or statutory provisions. They arise from the context of the contract, commonly accepted practices within an industry, or legal standards that govern such contracts.

Option B captures this concept accurately, as these terms often stem from common sense and the practicalities tied to the type of transaction or relationship being established. For instance, in a hospitality setting, there are often expectations about service quality or safety that are not written down but are understood by both parties.

The other options do not align with the definition of implied terms. Explicitly written terms refer to those agreements specifically documented, while negotiated terms are consciously agreed upon and documented by the parties involved. Lastly, implied terms cannot simply be overridden by one party; they are fundamental to the operation of the contract and the expectations surrounding it. Thus, recognizing implied terms helps in understanding the complete framework of obligations and rights within a contract.