An express contract is a type of legally binding agreement between two parties in which every detail of the agreement is discussed and documented in writing. In other words, it is a contract that clearly states what is expected from each party, and by signing it, both parties agree to carry out their respective obligations.
Unlike other contracts, an express contract is not based on conduct or verbal promises. It relies only on what is stated within the written contract itself. This makes it possible for the parties to know exactly what is expected of them without the need for any further explanation.
Examples of Express Contracts
An express contract is commonly used in a wide range of businesses and transactions. Some common examples include:
- Leasing agreements
- Pre-employment agreements
- Real estate purchases
- Contracts for services already performed
- Purchase orders for goods
The Legal Significance of Express Contracts
When it comes to legal matters, express contracts are of utmost importance. Courts consider them binding and valid, and if either party fails to adhere to the terms of the agreement, they may be sued for breach of contract. Further, an express contract may become part of a larger legal document, such as a will or trust.
Furthermore, express contracts are also becoming popular in other areas such as economics. Many organizations and businesses use them to create systems of incentive. For example, an organization might draw up a contract with its employees in which they agree to receive a certain amount of pay in exchange for their services. This type of incentive system can help to ensure that everyone is committed to fulfilling their responsibilities.
Conclusion
In summary, an express contract is a legally binding agreement between two parties in which every detail is documented. It is essential for any business or organization that is dealing with legal matters, as it is considered binding in the eyes of the court. Furthermore, express contracts can also be used for incentive systems and other types of agreements.