Contracts are legally binding agreements between two or more parties. They can be either express or implied. Express contracts are those where the terms and conditions are explicitly stated, either in writing or verbally. Implied contracts, on the other hand, are those where the agreement is not explicitly stated but is instead inferred from the conduct of the parties involved.
Express Contracts
Express contracts are the most common type of contract. They are created when the parties involved explicitly state the terms and conditions of the agreement. These contracts can be either written or oral, although written contracts are more common. Examples of express contracts include employment contracts, lease agreements, and loan agreements.
The terms of an express contract are often negotiated between the parties before the agreement is signed. This means that both parties have a clear understanding of the terms and conditions they are agreeing to. If one party breaches the contract, the other party can take legal action to enforce the terms and seek damages.
Implied Contracts
Implied contracts, on the other hand, are created when the parties involved do not explicitly state the terms and conditions of the agreement. Instead, the agreement is inferred from the conduct of the parties involved. Implied contracts are often created when one party performs a service for another party and the second party accepts the service without objection.
For example, if you take your car to a mechanic to have it repaired, an implied contract is created when you leave your car with the mechanic and he begins working on it. The agreement is implied because you did not explicitly state the terms and conditions of the agreement, but your conduct implied that you would pay for the service.
Implied contracts can also be created through the actions of the parties involved. For example, if an employee continues to work for an employer after their contract has expired, an implied contract may be created. The employee’s actions imply that they are willing to continue working for the company, and the employer’s actions imply that they are willing to continue paying the employee.
Key Differences
The key difference between express and implied contracts is that express contracts are explicitly stated, while implied contracts are inferred from the conduct of the parties involved. Express contracts are most commonly used in situations where the parties want to negotiate specific terms and conditions before agreeing to the contract. Implied contracts are most commonly used in situations where the parties are engaging in a transaction and the terms of the agreement are not explicitly stated.
Another key difference between express and implied contracts is that express contracts are easier to enforce than implied contracts. With an express contract, the terms and conditions are clearly stated, which makes it easier for a court to determine if one party has breached the contract. With an implied contract, the terms of the agreement are not clearly stated, which can make it difficult to determine if a breach has occurred.
In conclusion, both express and implied contracts are legally binding agreements that can be used in a variety of situations. Express contracts are created when the terms and conditions of the agreement are explicitly stated, while implied contracts are created when the terms and conditions are inferred from the conduct of the parties involved. While express contracts are easier to enforce, both types of contracts have their place in the legal system. It is important to understand the key differences between the two types of contracts when entering into an agreement with another party.