Compare express contract and implied contract

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Express contracts and implied contracts are two categories of a contract. Express contract illustrates promises made between parties with terms and conditions made clear.

Implied contracts are made between parties based on behaviours of parties. Elements of express contracts are offer and acceptance. Implied contracts don’t have any written contract. These contracts happen due to circumstances.

Express contract

In these contracts parties state terms and conditions either in written form or in orally. In other words agreement offers and acceptances are communicated either in written form or verbally.

Example

A party has offered to another party to install a carpet for payment of Rs.5000/-. Here terms and conditions are one party accepts to install a carpet and another party accepts to pay amount of Rs.5000/-. This contract can 2be validated in court of law.

Implied contract

In these contracts elements (offer and acceptance) are made without use of words or in this contract activities and conduct of parties concerned are inferred.

Types of implied contracts are as follows−

  • Implied by law − Parties don’t have any intention to enter into contracts.
  • Implied by fact − Obligation is created between parties based on action and circumstances.

Example

A doctor saves his neighbour and provides medical treatment until the ambulance or emergency team reaches the location. Now the doctor bills his neighbour for his service. Court recognize implied in law contract though neighbour not request the doctor service.

A company regularly gets his suppliers from company B and pays according to market price. After some days, company A orders his suppliers without price discussion. Now an implied law of fact is inferred in this example.

Comparison

These two contracts mainly differ on the basis of mode of communication and required evidence. In express contract terms and conditions are manifested and in implied contract, contract exists based on conduct of parties involved.

The major differences between express contract and implied contract are as follows−

Sr.NoExpress contractImplied contract
1
Proposal and acceptance results in an agreement which is enforceable by law.
Proposal and acceptance results in contract.
2
It is expressed verbally.
It is expressed through other means.
3
Contract is created by words.
Contract is created by conduct/behaviour.
4
Example - Leasing agreement etc.
Example - Sale in auction etc.


raja
Published on 05-Jul-2021 12:24:40
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