When it comes to legal agreements, there are two types of contracts: implied and expressed. Although both types of contracts might seem similar, they differ in significant ways. In this article, we’ll dive into the key differences between implied and expressed contracts.
Firstly, let`s define what an implied contract is. An implied contract is a legally binding agreement between two parties that`s inferred from their actions, conduct, or circumstances, rather than from written or spoken language. Implied contracts are generally based on the actions or behavior of the parties involved and are often used when there is no formal agreement in writing.
On the other hand, an expressed contract is a contract that is directly stated, either in written or spoken form, between two parties. This type of contract contains specific terms and conditions that both parties agree on and sign. Expressed contracts are often used for more significant transactions to ensure that the terms of the agreement are clear.
The main difference between an implied and an expressed contract is the manner in which they are formed. An implied contract is created when one party`s actions suggest that they have agreed to an obligation. In contrast, an expressed contract is formed when both parties negotiate and agree to specific terms and conditions.
Another fundamental difference between these two types of contracts is the level of clarity they offer. Since implied contracts are not written down, they may lack specificity and can be difficult to interpret. Expressed contracts, on the other hand, are written down, clear, and provide explicit details on the obligations of each party.
Furthermore, in case of a dispute, the legal remedies may differ between implied and expressed contracts. In implied contracts, the parties may have to rely on oral testimony and other forms of evidence to prove the existence and terms of the agreement. This can be challenging, as it may be difficult to determine the exact terms the parties agreed upon. In contrast, disputes related to expressed contracts can be resolved more easily as the terms and conditions of the agreement are explicitly stated, making it easier for a court to enforce.
In conclusion, when it comes to contracts, it`s crucial to understand the differences between an implied and an expressed contract. While both types of contracts are legally binding, an expressed contract provides more clarity and specificity, making it easier to enforce and resolve any disputes that may arise. In contrast, an implied contract is often inferred from the actions or conduct of the parties involved, making it more challenging to enforce and resolve any disputes.