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What Are Express Terms in a Contract?

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Published by:

David Johnson

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Reviewed by:

Alistair Vigier

Last Modified: 2024-05-24

Are you wondering what express terms are in a contract? A contract is a combination of provisions that constitute obligations of the contract’s parties. These terms may be expressly or tacitly stated, and they may have less or more legal weight based on the purpose of the contract. 

Breach of these terms may lead to litigation.

The parties are directly aware of the express contract’s terms. It is a combination of a party’s direct binding promises to the other. 

Express terms can be written or verbal. They must be understandable for both parties and have reasonable meaning and distributed value. 

A binding contract requires an unconditional offer and acceptance. The parties’ intentions must also be reflected. Implied contracts arise from the practice of business and interactions. 

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Previous interaction of the parties

Written forms are not required in these kinds of contracts. Contracts concluded by practice, expressly or impliedly, are all treated by law in the same way. The court recognizes the contract based on the previous interaction of the parties.

For example, if the parents of a child ask a person to hold $10,000 in trust and the person keeps the money instead, the law protects the parents. 

The third party is not allowed to keep the money because of the absence of a formal contract. An implied contract is concluded by law, and the person has to do their contractual obligation. 

Read other legal articles: Why a lawyer can refuse to work with you

Express Terms in a Contract – Conditions and Warranties

An interesting point about the contract terms is that terms can be written and oral. Some terms are essential and called conditions, and some are less important, called warranties. 

Conditions are so important that the parties could not enter into a contract without them! This is another point about which Legamart and its lawyers can help the parties negotiate better conditions.

The parties must be aware that a contract breach is a failure that can cause damages. Each term gives rise to a contractual obligation, similar to a breach that can give rise to litigation. Although not all contract terms are expressed, some of them carry less legal intensity.

Most contracts are written in the business area, so the parties’ obligations are precisely described and become express terms somehow. This should be considered a pretty important task, and a professional lawyer could be the best option for a secure contract.

Express Terms in a Contract – An oral or written statement

An important point should be noted about the representation and express term: a representation is either an oral or written statement and is not always a part of the contract. 

However, the express term should be reasonable. Even if all parties were in agreement about it, it would not be enforced if it was unreasonable.

A contract is impliedly concluded when one of these elements is performed:

  • When the claimant has faced severe damage
  • When the court finds that the other party was unjustly enriched, the claimant does not have the intention to make the contract null
  • Express terms contained in a contract depend on the contract type. Standard terms comprise price, time scales, warranties, and indemnities

Clarification with an example:

One party expressly offers to sell something to the other party, and the other person accepts the offer, and the acceptance is expressed by saying I will buy! 

This is an expressed contract because the parties have stated the offer, acceptance, and consideration.

Identifying the express terms is not always easy. Sometimes, they are in a written contract, and they are pretty simple to recognize. On the other hand, they are less clear.

It should be considered that in addition to the express terms in written documents, the terms could be incorporated in a contract as follows:

Pre-Contractual statements

These kinds of statements are classified as follows:

It is possible to consider the terms expressed even if the parties do not discuss them. For example, terms could be incorporated by exchanging tickets and written terms.

The express terms might be accommodated by prior dealing between the parties. The parties can use this when they have regular dealings with each other, and this regularity should be over a reasonable period.

Why is a Lawyer Required?

Writing a contract and giving it an explicit and implicit shot is very important. It can put either party in a position of weakness or strength.

The terms of the contract and each party’s rights and obligations must be correctly and accurately stated in the contract. 

To achieve this goal, getting legal advice from professional lawyers on various types of contracts is constructive.

Legamart legal team consists of professional lawyers in different countries and jurisdictions, which can be very helpful in advancing legal goals in contracts and contract arrangements in general.

Read more business law articles to learn more.

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