Express Contract vs. Implied Contract: What's the Difference?
Edited by Aimie Carlson || By Harlon Moss || Published on November 11, 2023
Express contract is formed by explicit written or spoken agreement, while an implied contract is formed by actions or conduct.
Key Differences
An express contract is a clear, definitive agreement between two parties where the terms are explicitly stated, either in writing or verbally. An implied contract, on the other hand, is formed by the actions or conduct of the parties involved, without any written or verbal agreement. In an express contract, the terms and conditions are laid out clearly, whereas in an implied contract, the terms and conditions are assumed based on the behavior of the parties involved.
An express contract requires clear and specific terms that are agreed upon by all parties involved. In contrast, an implied contract is formed based on the actions or conduct of the parties involved, and the terms may not be explicitly stated. Express contracts are usually easier to enforce in a court of law because the terms are clear and agreed upon, whereas implied contracts may be more difficult to enforce because the terms are assumed and may not be clear.
In an express contract, the parties have a clear understanding of their rights and obligations because the terms are explicitly stated. In an implied contract, the parties may have a general understanding of their rights and obligations, but the specifics may not be clear because the terms are not explicitly stated. Express contracts are typically written or verbal agreements, while implied contracts are formed based on the actions or conduct of the parties involved.
Comparison Chart
Formation
Formed by explicit agreement
Formed by actions or conduct
Terms and Conditions
Clearly and explicitly stated
Assumed based on behavior
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Enforceability
Easier to enforce in court
May be more difficult to enforce
Understanding
Clear understanding of rights
General understanding of rights
Communication
Written or verbal agreement
Formed without written or verbal agreement
Express Contract and Implied Contract Definitions
Express Contract
A clear and specific agreement between two or more parties.
The express contract outlined the terms of the employment relationship.
Implied Contract
A contract formed by actions or conduct.
Their regular payments created an implied contract for services.
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Express Contract
A contract where the terms are explicitly stated and agreed upon.
The express contract included a clause for dispute resolution.
Implied Contract
A contract that is inferred from the behavior of the parties.
The repeated transactions established an implied contract.
Express Contract
An agreement that is not implied or inferred.
The express contract was signed by both parties before work commenced.
Implied Contract
An agreement where the terms are not explicitly stated.
An implied contract existed based on their longstanding business relationship.
Express Contract
A contract that is clear and definitive.
The express contract detailed the responsibilities of each party.
Implied Contract
A contract that is assumed based on the circumstances.
An implied contract was formed when they continued to accept the product.
Express Contract
A contract formed by explicit written or spoken agreement.
We entered into an express contract for the sale of my car.
Implied Contract
An agreement that is not written or spoken.
The implied contract was based on their previous interactions.
FAQs
What is an implied contract?
An implied contract is an agreement formed by the actions or conduct of the parties, without any written or verbal agreement.
How is an implied contract formed?
An implied contract is formed by the behavior or actions of the parties involved.
How is an express contract formed?
An express contract is formed by explicit written or spoken agreement between two or more parties.
Are implied contracts less valid than express contracts?
No, implied contracts are just as valid as express contracts, but they may be more difficult to enforce in court.
What is an express contract?
An express contract is a clear, specific agreement where the terms are explicitly stated, either in writing or verbally.
Can an express contract be oral?
Yes, an express contract can be oral, as long as the terms are clearly and explicitly stated.
Can an implied contract be written?
No, an implied contract is not written or spoken; it is formed based on the behavior of the parties.
Can an implied contract be modified?
Yes, an implied contract can be modified, but the modification may be more difficult to prove.
Are there any legal requirements for forming an express contract?
Yes, an express contract must meet certain legal requirements, such as offer, acceptance, and consideration.
Are there any legal requirements for forming an implied contract?
Yes, an implied contract must also meet certain legal requirements, such as mutual assent and consideration.
How can an express contract be enforced in court?
An express contract is easier to enforce in court because the terms are clear and agreed upon by all parties.
Can an express contract be modified?
Yes, an express contract can be modified, but the modification must be agreed upon by all parties involved.
Can an express contract be voided?
Yes, an express contract can be voided if it is found to be illegal or if one of the parties fails to fulfill their obligations.
Can an implied contract be enforced in court?
Yes, an implied contract can be enforced in court, but it may be more difficult to prove because the terms are not explicitly stated.
Can an express contract be inferred from actions or conduct?
No, an express contract requires clear and specific terms that are agreed upon by all parties involved.
How can an implied contract be enforced in court?
An implied contract may be more difficult to enforce in court because the terms are assumed and may not be clear.
Can an implied contract be voided?
Yes, an implied contract can be voided, but it may be more difficult to prove the grounds for voiding the contract.
What are some examples of express contracts?
Examples of express contracts include employment contracts, sales contracts, and lease agreements.
What are some examples of implied contracts?
Examples of implied contracts include service contracts formed by regular payments or business relationships established by repeated transactions.
What is the difference between an express contract and an implied contract?
The main difference is that an express contract is formed by explicit agreement, while an implied contract is formed by actions or conduct.
About Author
Written by
Harlon MossHarlon is a seasoned quality moderator and accomplished content writer for Difference Wiki. An alumnus of the prestigious University of California, he earned his degree in Computer Science. Leveraging his academic background, Harlon brings a meticulous and informed perspective to his work, ensuring content accuracy and excellence.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
