When it comes to contracts, there are two types that you should know about: implied contracts and expressed contracts. Although both types of contracts may bind two or more parties to an agreement, there are notable differences between them.
An expressed contract is one in which all terms and conditions are explicitly stated in writing or verbally agreed upon by the parties involved. This type of contract is usually drafted in formal documents, such as legal agreements, lease contracts, purchase orders, or employment contracts. An expressed contract clearly outlines the rights and obligations of each party and includes all the necessary details such as time frames, payment terms, and deliverables.
On the other hand, an implied contract is one in which the terms and conditions are inferred from the actions or conduct of the parties involved. Unlike an expressed contract, an implied contract does not have a formal written agreement. Instead, the terms and conditions of the contract are implied by the actions or behavior of the parties involved. This type of contract is also known as a “quasi-contract.”
For example, if you go to a restaurant and order food, you are entering into an implied contract. The restaurant is obligated to provide you with a meal and you are obligated to pay for it. Even though there is no written agreement, the actions of both parties create an implied contract.
So what is the main difference between an implied contract and an expressed contract? The main difference is that an expressed contract is a formal, written or spoken agreement, while an implied contract is an agreement that is inferred from the actions or behaviors of the parties involved. An expressed contract is often used in situations where clarity and specificity are important, while an implied contract is more informal and based on expectations and assumptions.
In conclusion, it is important to understand the differences between implied and expressed contracts. Both types of contracts have their place in business and everyday life, and it is important to recognize which type of contract you are entering into to ensure that all parties are clear on their rights and obligations. Whether you are signing a formal legal agreement or agreeing to hire a contractor for a project, understanding the difference between these two types of contracts will help you make informed decisions and avoid any potential legal issues.