Contracts are legally binding agreements between two or more parties that define the terms and conditions of their relationships. These agreements can be either express or implied, depending on the circumstances surrounding their formation. In this article, we will explore some examples of express and implied contracts to help you better understand the distinction between the two.
Express contracts are those that are explicitly stated in writing or verbally, leaving no room for ambiguity or misunderstanding. The terms of the contract are explicitly spelled out, and all parties involved must agree to them before the contract can become binding.
Examples of express contracts include:
Employment Contracts: An employment contract is an example of an express contract. It outlines the terms and conditions of an individual`s employment, including job responsibilities, pay, benefits, and termination policies.
Real Estate Contracts: Real estate contracts are another type of express contract. They specify the terms and conditions of a property sale, including the purchase price, closing date, and any contingencies that must be met before the sale can go through.
Lease Agreements: A lease agreement is an express contract that outlines the terms and conditions of the rental of a property. It specifies the rental price, the length of the lease, and any restrictions or requirements imposed on the tenant.
Sales Contracts: Any agreement for the sale of goods or services is an express contract. The terms of the contract, including the price, delivery date, and any warranties or guarantees, must be explicitly stated in writing or verbally agreed upon by all parties involved.
Implied contracts, on the other hand, are those that are not explicitly stated but are instead inferred from the actions or circumstances of the parties involved. They are based on the assumption that there is an understanding or agreement between the parties, even if it is not formally expressed in writing or verbally.
Examples of implied contracts include:
Employment Contracts: An implied contract can arise when an employer hires an employee without any written agreement but provides payment and benefits as if there were a formal contract. The actions of the employer and employee indicate an implied agreement.
Service Contracts: An implied contract can arise when a service provider performs work for a client without a formal agreement. If the client pays for the work done or makes additional requests, an implied contract may be formed.
Sales Contracts: An implied contract can arise when a seller demonstrates their intent to sell a product and a buyer demonstrates their intent to purchase it. This can occur through actions such as a buyer placing an order and the seller shipping the product.
Understanding the difference between express and implied contracts is crucial for anyone entering into a formal agreement. While express contracts are explicitly stated in writing or verbally agreed upon by all parties involved, implied contracts arise from the actions or circumstances of the parties involved. Knowing which type of contract you are dealing with can help prevent misunderstandings and ensure that your rights and obligations are protected.