National Board Of Examination (NBE) Arts Practice Exam

What type of contract does the funeral home have with the family of the deceased at the time the transfer is made?

1. Option

2. Implied

3. Expressed

4. Contingency

The correct answer is: Implied

The relationship between a funeral home and the family of the deceased at the time of transfer is characterized as an implied contract. This type of contract is not formally documented but arises from the actions and circumstances surrounding the agreement. When a funeral home takes responsibility for the body of the deceased, it indicates a mutual understanding that services will be provided based on the family's needs and expectations, even if there isn't a signed written contract at that moment. This understanding encompasses expectations for services such as body preparation, transportation, and arrangements for burial or cremation. The actions of both the funeral home and the family imply a contractual agreement to fulfill these roles and responsibilities, thus creating this form of contract. In contrast, the other types of contracts listed have distinct characteristics that differentiate them from an implied contract. Expressed contracts, for example, typically require explicit terms and conditions to be stated, often in written form. Option contracts involve a guarantee that a particular decision or opportunity will be held open for a specified time, while contingency contracts depend on a specific event occurring. Since the scenario in question relies on the shared understanding and actions of both parties rather than explicit terms, it is classified as an implied contract.