Contracts are legal agreements which bind two or more parties together in a promise to fulfill certain obligations. There are two types of contracts- express contracts and implied contracts. Express and implied contracts differ in several ways, which this article will explain in detail.
Express Contracts
An express contract is a contract in which the parties involved explicitly express their mutual intent to enter into a legally binding agreement. Express contracts can either be written or verbal, but the terms and conditions of the agreement must be clear and unambiguous.
For example, if you buy a car from a dealer, you will be asked to sign a contract. The contract will detail the terms and conditions of your purchase, such as the price of the car, the payment schedule, and the warranty that comes with the car. This is an example of an express contract.
Implied Contracts
An implied contract is a contract that is based on the actions, conduct, or circumstances of the parties involved. Unlike an express contract, an implied contract does not involve a formal agreement. Instead, an implied contract is created when the actions or conduct of the parties involved suggest that they have entered into a legally binding agreement.
For example, if you ask a plumber to come to your house and fix your sink, you have created an implied contract. The plumber will do the work, and you will pay him for his services. Even though there is no written or verbal agreement, the actions of both parties imply that a contract has been created.
Key Differences Between Express and Implied Contracts
There are several differences between express and implied contracts. These differences include:
1. Formation
The first difference between express and implied contracts is how they are formed. Express contracts are created through a written or verbal agreement, while implied contracts are created through the actions or conduct of the parties involved.
2. Terms
Express contracts have clearly defined terms and conditions that are negotiated and agreed upon by all parties involved. On the other hand, the terms of an implied contract are less clear and are based on the actions and conduct of the parties involved.
3. Enforceability
Both express and implied contracts are legally binding and can be enforced in court. However, express contracts are easier to enforce because the terms and conditions are clearly defined. Implied contracts, on the other hand, can be harder to enforce because the terms are less clear.
4. Remedy
Remedies under an express contract are more straightforward than under an implied contract. With an express contract, parties can seek specific performance or damages for breach. With an implied contract, the remedy often depends on the particular circumstances and the conduct of the parties.
Conclusion
In summary, an express contract is a contract that involves a clear and unambiguous agreement between parties, while an implied contract is a contract that is created by the actions or conduct of the parties involved. While both types of contracts are legally binding, express contracts are easier to enforce because the terms and conditions are clearly defined. Understanding the differences between express and implied contracts is important for anyone entering into a legal agreement.