Contracts are essential legal documents that establish the terms and conditions of agreements between two parties. There are two primary types of contracts: implied and expressed. Both types of contracts are legally binding, but they differ in terms of their formation and enforcement.
An expressed contract is a contract that is explicitly agreed upon by both parties, either in writing or verbally. The terms and conditions of an expressed contract are typically outlined in a written document, such as a contract or agreement. Both parties must agree to the terms and conditions stated in the document for the contract to be legally binding. An expressed contract can be as simple as a handshake agreement or as complex as a multilateral agreement between several parties.
In contrast, an implied contract is formed when the parties involved in a transaction do not explicitly state the terms and conditions of the agreement but instead imply them through their actions or conduct. In other words, an implied contract is formed when the parties involved act as if there is an agreement in place, even though the terms and conditions of the agreement were never explicitly stated.
For example, if a homeowner hires a contractor to paint their house without discussing the terms and conditions of the agreement, an implied contract is formed. The contractor is expected to paint the house, and the homeowner is expected to pay for the work, even though these terms were never explicitly agreed upon.
Implied contracts can be either express implied or implied in fact. Express implied contracts are formed when the actions of the parties imply that a contract exists, but the terms and conditions of the agreement are not explicitly stated. Implied in fact contracts are formed when the actions of the parties imply the existence of an agreement, and the terms and conditions of the agreement can be inferred from the circumstances surrounding the transaction.
It is important to note that while implied contracts are legally binding, they can be more challenging to enforce than expressed contracts. This is because the terms and conditions of an implied contract are not explicitly stated, which can lead to disagreements between the parties involved.
In conclusion, expressed and implied contracts are two primary types of contracts that differ in terms of their formation and enforcement. While expressed contracts are explicitly agreed upon by both parties and outlined in a written document, implied contracts are formed when the parties involved act as if there is an agreement in place, even though the terms and conditions of the agreement are not explicitly stated. As a professional, it is essential to understand the differences between implied and expressed contracts to accurately convey their meanings and implications to readers.
