What Is the Difference between an Express and an Implied Contract Give an Example of Each

Contracts are legal agreements between two or more parties. These agreements can be either express or implied. Understanding the difference between an express and an implied contract is important, as it determines the rights and obligations of the parties involved.

Express Contracts

An express contract is an agreement made explicitly, either in writing or by spoken communication, between two parties. The terms of the contract are clearly outlined, leaving no room for interpretation. The parties involved agree to the terms after discussing them, bargaining, and coming to a mutual understanding.

For example, a homeowner may hire a contractor to renovate their kitchen. The contractor provides a detailed estimate, which outlines the scope of the project, the materials needed, and the cost of the renovation. The homeowner agrees to the terms and signs the contract, thereby creating an express contract.

Implied Contracts

An implied contract is an agreement that is not explicitly stated but is inferred from the actions, conduct, or circumstances of the parties involved. These contracts are based on the conduct of the parties, and the terms are not explicitly set forth.

For example, imagine a person walks into a restaurant and orders a meal. By doing so, they have entered into an implied contract with the restaurant, agreeing to pay for the meal that they have ordered. The restaurant has provided a service, and the customer has agreed to pay for it, creating an implied contract.

Another example of an implied contract is when an employee continues to work for an employer without a formal agreement in place. The employer is implied to have agreed to pay the employee, and the employee is implied to come to work and perform the assigned duties.

Conclusion

In summary, the main difference between an express and an implied contract is that an express contract is explicitly stated, while an implied contract is inferred from the actions of the parties involved. Both types of contracts are legally binding and enforceable, and it is important to understand the difference between them to determine the rights and obligations of the parties involved.