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Express Contract

DEFINITION

Express contract: Contract that binds parties with specifically stated terms, conditions, and obligations of each party. While the contract may be oral or in writing there must be mutual intent of both parties with a definitive offer, acceptance, and consideration.

EXPLANATION

An express contract — sometimes known as a special contract — is an agreement that explicitly sets out an exchange of terms between parties. Such contracts may be verbal in nature, although they are typically done in writing in order to clarify the roles and duties of each party. An express contract requires mutual intent on behalf of both parties prior to the execution of a contract.

An express contract is an agreement or promise through words or written in writing or a combination of both that states the intention of the parties to make a contract. An implied contract is an assumed contract between parties that is not in writing or verbally discussed; however, an implied contract is based on the action of the parties.

Consider the following example: Jonny and Marry moved to Jefferson county. They did not notify the city of their moving into the city and did therefore did not create an account with the city for waste management services. Jonny and Marry take their trash out. The following day the trash is collected by the city. Can Jonny and Marry be billed for services rendered?

Yes, they can be billed and the city has the right to charge them for services rendered. Jonny and Marry made an implied contract when they took out their trash to pay for the service.

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