What is the difference between an express and implied contract?

A contract is a legally binding agreement between two or more parties. Contracts can be expressed orally or in writing and can be either expressed or implied. An express contract is one which is clearly defined and its terms are stated explicitly. This type of contract often involves a written agreement, where the parties have explicitly stated their intent to enter into an agreement. In contrast, an implied contract is one in which the terms are not explicitly stated but are inferred from the actions and conduct of the parties. The main difference between an express and implied contract is that the terms of the express contract are explicitly stated while the terms of the implied contract are implicitly agreed upon. In California, an express contract must be in writing and signed by both parties in order to be legally enforceable. An implied contract, on the other hand, need not be in writing or signed in order to be legally enforceable. The courts in California also look at the intent of the parties when deciding whether an express or implied contract has been formed. If the parties intend to enter into a contract, then it can be either express or implied. The advantage of an express contract is that the terms of the contract are explicitly stated, thereby providing clarity and certainty. This makes it easier to dispute a contract in case of a breach. On the other hand, the disadvantage of an express contract is that it requires the parties to communicate their intent clearly and unambiguously, which can be difficult. The advantage of an implied contract is that it does not require the parties to communication their intent explicitly. This can be beneficial for both parties in some cases as it may save time, money, and effort. Additionally, terms can often be inferred from the circumstances and behaviors of the parties without the need for explicit communication. The disadvantage of an implied contract is that it can lead to disputes and misunderstandings regarding the terms of the agreement. This is because the terms of the agreement may not be explicitly stated and the parties may disagree on their interpretation of the terms. This can lead to costly legal disputes and delays in resolving the contract.

Related FAQs

What is a joint venture agreement?
What are the defenses to a breach of contract?
What is the formalities requirement?
What is the effect of a partial payment?
What is a novation of a contract?
What is a discharge of contract?
What is the validity of an option contract?
What is the effect of an anticipatory breach?
What is a unilateral contract?
What is a contract of service?

What is the difference between an express and implied contract?

Related FAQs

Related Blog Posts