If you are in the legal profession, you may have come across the terms `implied contract` and `express contract.` Both of these contracts are legally binding, but they differ significantly in the way they are formed. In this article, we will explore the differences between an implied contract and an express contract.
What is an Express Contract?
An express contract is `expressed` or written in words. It is a contract that is created when two or more parties come to a mutual agreement and the agreement is expressed in writing or through verbal communication. The agreement is made clear and unambiguous, which means that the parties have a clear understanding of what is expected from both sides.
For example, suppose you are hiring a contractor to remodel your kitchen. You sign a written agreement that outlines the scope of work, payment, and timeline. This is an express contract. Both parties have agreed to the terms and conditions outlined in the agreement, and they have a clear understanding of what is expected from each other.
What is an implied contract?
An implied contract is a contract that is not expressed in writing or verbally. It is a legally binding agreement that is formed through the actions and conduct of both parties. An implied contract is created when there is a suggestion of an agreement, and both parties act on this suggestion. In other words, the agreement is implied through the actions of both parties.
For example, suppose you are a customer at a restaurant. When you order food, you create an implied contract with the restaurant. By ordering food, you are suggesting that you will pay for the food, and the restaurant is suggesting that they will provide you with food. The contract is implied because there is no written or verbal agreement, but it is legal because there is an understanding between both parties.
What are the Differences Between an Implied Contract and an Express Contract?
The main difference between an implied contract and an express contract is the way they are formed. Express contracts are created through clear and unambiguous communication, either in writing or verbally. In contrast, implied contracts are formed through the actions and conduct of both parties.
Another key difference is that express contracts are easier to prove in court. Since the agreement is clear and unambiguous, it is easier to demonstrate that a breach of contract has occurred. On the other hand, implied contracts can be difficult to prove, especially if one party disputes the existence of the agreement.
Lastly, express contracts are more enforceable than implied contracts. Since the terms and conditions are clearly outlined, it is easier for the courts to enforce the agreement. When it comes to implied contracts, the courts may rely on the conduct of the parties to determine the terms and conditions, which can be more subjective.
Conclusion
In conclusion, both express and implied contracts are legally binding agreements. However, they differ significantly in the way they are formed, which affects their enforceability. Express contracts are formed through clear and unambiguous communication, while implied contracts are formed through the actions and conduct of both parties. If you are dealing with legal contracts, it is important to understand the differences between these two types of contracts to ensure that you are protected in case of any disputes.