What is the difference between express and implied contracts?

Prepare for the UCF BUL3130 Legal and Ethical Environment of Business Exam 2. Dive into legal and ethical concepts with flashcards, multiple-choice questions, and detailed explanations. Get exam-ready with comprehensive study resources!

An express contract is characterized by a clear and definitive agreement, where the terms are explicitly stated, often in written form but can also be verbal. This clarity ensures that both parties understand their obligations, making it easier to enforce if a dispute arises.

In contrast, an implied contract is not articulated directly but is inferred from the actions, circumstances, or conduct of the parties involved. For example, if a person goes to a doctor for treatment, there is an implied contract that the patient will pay for the medical services rendered, even if no formal agreement was made.

Understanding the distinction is crucial because it affects how contracts are created and enforced. Express contracts provide a solid foundation for legal agreements, while implied contracts navigate scenarios where formal terms are absent but obligations still exist due to the parties' interactions.

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