What Is Express Contract

An express contract is a legal agreement that is explicitly stated in writing or orally by the parties involved. This type of contract is the opposite of an implied contract, which is not explicitly stated but rather inferred by the conduct of the parties involved. Express contracts are important because they establish clear terms and conditions for both parties, ensuring that all parties are aware of and agree to the terms of the contract.

Express contracts are legally binding, and they can be used to govern a variety of situations, including employment contracts, lease agreements, and sales contracts. In order to be valid, an express contract must meet certain legal requirements. These requirements include a clear and unambiguous agreement between the parties, mutual assent, and consideration (i.e., the exchange of something of value).

One of the key benefits of an express contract is that it provides clarity and helps avoid disputes. Because the terms of the contract are spelled out in detail, there is less room for confusion or ambiguity. In addition, an express contract can provide legal recourse for either party if the other fails to live up to the terms of the agreement.

However, it is important to note that an express contract does not necessarily need to be in writing. In some cases, an oral agreement can be legally binding. However, it is usually easier to enforce a written contract because the terms are more clearly defined and can be proven in court.

Overall, an express contract is an important legal tool that can be used to establish clear terms and conditions between two parties. By ensuring that both parties understand and agree to the terms of the contract, an express contract can help prevent disputes and provide legal recourse in case of a breach of contract.