What Is An Express Contract?

An express contract is a legally binding agreement in which the terms are clearly stated and agreed upon by the parties involved. The agreement may be in writing or verbally communicated but must be explicit in outlining the rights and duties of each party.

Characteristics of an Express Contract

Clear Agreement:

The terms of the contract are clearly defined, with mutual consent from all parties involved. The offer and acceptance are unambiguous, leaving no room for misunderstanding.

Written or Oral Form:

Express contracts can be either written or oral. However, for certain types of agreements (such as real estate transactions or contracts lasting over a year), a written contract is required by law.

Mutual Consent:

Both parties involved must explicitly agree to the contract terms, either through a written document or a verbal agreement. There should be no uncertainty regarding the obligations of each party.

Legal Enforceability:

Once formed, an express contract is legally enforceable in a court of law, provided it meets all the essential elements of contract law (offer, acceptance, consideration, and intention to create legal relations).

Differences Between Express and Implied Contracts

Express Contracts:

The terms are directly stated by the parties involved, either in writing or orally. There is no room for inference, as both parties have explicitly agreed to the terms.

Implied Contracts:

The terms of an implied contract are not directly stated but are inferred from the actions or conduct of the parties. For example, if someone orders a meal at a restaurant, it is implied that they agree to pay for the food.

Example

If a homeowner hires a contractor to renovate their kitchen and they agree on a set price, timeline, and scope of work via a written agreement, this is an express contract. Both parties clearly communicate their duties and responsibilities, making it legally binding. If any party fails to fulfill their obligations, the contract can be enforced in court.