Express vs. Implied

Express vs. Implied contracts. Express Contract - An express contract is a clear, definite agreement in which the parties openly state the terms, either verbally or in writing, at the time the agreement is made. Once the parties communicate and mutually agree to the terms, an express contract exists. Mutual understanding and consent are essential. Real estate listing agreements and purchase and sale contracts are common examples of express contracts.Implied Contract - An implied contract is formed through the actions or behavior of the parties rather than through spoken or written words. The terms and obligations are understood from what the parties do. Implied contracts occur in everyday life. For instance, when someone enters a restaurant and orders a meal, an implied contract is created. It is understood that the customer will pay for the food and service, even though the payment terms were not specifically discussed beforehand.