When it comes to entering into a contract, there are two types to consider: implied and expressed. While both are legally binding, they differ in how the terms are established and communicated. Understanding the difference between the two types of contracts is important for anyone entering into a business agreement.

Implied contracts are those that arise from the behavior or actions of the parties involved. These contracts are not explicitly stated in writing or orally but are implied by the conduct of both parties. For example, if you order a meal at a restaurant, there is an implied contract that you will pay for the meal in exchange for the food.

Implied contracts can also be created through a course of dealing between two parties. This means that the way the parties have interacted in the past can establish the terms of the contract. If a supplier has been delivering goods to a customer for several years, there is an implied contract that the customer will pay for the goods upon delivery.

On the other hand, expressed contracts are those that are explicitly stated in writing or orally. These contracts are negotiated and agreed upon by both parties and document the terms of the agreement. For example, when you sign a lease for an apartment, you are entering into an expressed contract that outlines the terms and conditions of the lease.

Expressed contracts can also be created through a written offer and acceptance. In this scenario, one party makes an offer outlining the terms of the agreement, and the other party accepts the offer, creating a legal agreement.

While both implied and expressed contracts are legally binding, expressed contracts are generally considered more reliable because the terms are explicitly stated in writing, leaving no room for confusion or misunderstanding. Implied contracts, on the other hand, can be much harder to establish, as the terms are not explicitly stated and may be open to interpretation.

In conclusion, when entering into any business agreement, it`s important to understand the distinction between implied and expressed contracts. Both types can be legally binding, but expressed contracts are generally considered the safer option as the terms are explicitly stated in writing. However, in certain situations, such as long-standing business relationships, implied contracts may be the norm. Regardless of the type of contract, it`s important to carefully review and understand the terms before signing on the dotted line.