Types of Express Contract
When two parties enter into an agreement, it is essential to have a clear understanding of the terms and conditions of the contract. An express contract is one such agreement that explicitly states the intentions and obligations of both parties. In this article, we will discuss the different types of express contracts.
1. Written Contract: A written contract is a legally binding agreement that is reduced to writing and signed by both parties. It is the most common type of express contract, and it outlines the terms and conditions of the agreement, including the obligations and responsibilities of both parties.
2. Oral Contract: An oral contract is a verbal agreement between two parties, with no written documentation. It is still legally binding, but it can be difficult to prove in court. An oral contract is often used for small business transactions or for agreements with friends and family.
3. Implied Contract: An implied contract is an agreement that is not explicitly stated but is inferred by the behavior of both parties. For example, when you go to a restaurant and order food, you are entering into an implied contract with the restaurant to pay for the food. The terms and conditions of the contract are implied by the behavior of both parties.
4. Unilateral Contract: A unilateral contract is an agreement where only one party makes a promise, and the other party is required to perform an action. A common example of a unilateral contract is a reward for finding a lost item. The person who loses the item promises a reward for its return, and the person who finds it is required to perform the action of returning it to the owner.
5. Bilateral Contract: A bilateral contract is an agreement where both parties make promises and are required to perform actions. A common example of a bilateral contract is a sales contract. The seller promises to deliver a product, and the buyer promises to pay for it.
In conclusion, an express contract is a legally binding agreement that explicitly states the terms and conditions of the agreement. There are different types of express contracts, including a written contract, oral contract, implied contract, unilateral contract, and bilateral contract. It is essential to understand the different types of contracts to ensure that your agreement is legally binding and enforceable.