What is the difference between express and implied contracts?

Express contracts are those that are explicitly stated, either verbally or in writing. The terms of these contracts are clearly defined and agreed upon by all parties involved. On the other hand, implied contracts are not explicitly stated but are rather implied by the actions or conduct of the parties involved.

Formation of express contracts

Express contracts are formed when two or more parties explicitly agree to the terms and conditions of the contract. These terms are typically written out in a contract document or spoken and understood by all parties involved.

Formation of implied contracts

Implied contracts are formed based on the conduct of the parties involved. These contracts are not explicitly stated but are implied by the actions of the parties. For example, when a customer enters a store and purchases a product, an implied contract is formed that the customer will pay for the item.

Legal implications of express contracts

Express contracts are legally binding and enforceable in a court of law. If one party fails to uphold their end of the bargain, the other party can seek legal recourse.

Legal implications of implied contracts

Implied contracts are also binding in a court of law, provided that the court can infer the existence of an agreement based on the actions of the parties involved.

In business transactions, both express and implied contracts are commonly used, depending on the circumstances. It is essential for businesses to understand the differences between these two types of contracts to ensure that their contractual agreements are legally sound.