Hiro Capitals International – Express Contracts

What Is an Express Contract?

An express contract is an agreement where parties explicitly spell out the contract terms, either orally or in writing. In this type of contract, parties are fully aware of their agreed-upon terms. They also know the terms are binding and that any party can take legal steps to enforce them.

An example of an express contract is a franchise agreement between a franchisor and a franchisee. The franchisor allows the franchisee to do business under its brand in exchange for royalties and/or an initial franchise fee. The agreement explicitly states the franchise terms, and both parties sign the agreement.

Date: February 21, 2025
Client: Envato Group, US
Category: Get a Contract
Address: 2946 Angus Road, NY

Get an Express Contracts

An Express Contracts create rights and obligations between two or more parties. In most cases, a contract will also define how parties will perform those obligations and enforce those rights. Although most business contracts are express contracts, some are also implied contracts.

One essential thing about an express contract is that when an agreement qualifies as a valid contract, any of the parties can enforce it. This makes contractual risk a real issue in business processes, so mitigating contract management risk is vital to doing business.

An implied contract is the opposite of an express contract and is a contract where parties have not expressed the terms of their agreement either verbally or in writing. However, their actions or surrounding circumstances show an understanding that there is an agreement between them.

For example, suppose you walk into a barbershop and sit down for a haircut. Even if you didn’t discuss the price before the haircut, there is an implied agreement that you will pay for it.

Contract offer

Acceptance

Consideration

Awareness

Elements of an express contract

The difference between express contracts and implied contracts is that in express contracts, there is an actual verbal or written agreement. There is no such agreement in implied contracts, but you can infer it from the parties’ actions.

So long as the elements of a valid contract are present, courts can enforce both types of contracts. However, it is easier to prove and enforce an express contract, which is why most business contracts are written express contracts.

1. Contract offer

This is a promise to do something in exchange for the other party performing an action. An offer is essentially an invitation to enter into a contract.

Every contract begins when someone wants something and looks for another party that can fulfill the desire. An offer is present when they ask another party to meet the need in exchange for value.

2. Acceptance

When a party has presented an offer, the other party can reject or accept it. Acceptance happens when a party that receives an offer agrees to the terms. Upon receiving a contract, you can communicate acceptance orally or in writing. Acceptance can also be by conduct. For example, suppose someone offers to sell you an antique car for a specified price, and you send them the money. Your payment for the antique car is your acceptance of their offer.

3. Consideration

Parties enter into a contract because of the value they will get out of it. Consideration is the value the parties will exchange to perform the contract. And it doesn’t have to be momentary; it can also be providing goods or services.

4. Awareness

For a valid contract to exist, both parties must understand that signing the contract document means they are contracting. They must also sign the contract willingly without duress or misrepresentation. If any party signed the agreement without an awareness of what they were doing, there’s no valid contract.

5. Contractual Capacity

When all the elements of a valid contract are present, an express contract is enforceable once parties sign it (if it is in writing) or agree on it (if it is verbal). Parties now have obligations towards each other, and any party who fails to fulfill their responsibility is in breach of contract.

An express contract allows parties to explicitly state the terms of the contract and express their intention and willingness that the contract will be binding on them. Because of this, express written contracts are the easiest to manage and enforce. If any party breaches an express contract, the other party can file a lawsuit and seek remedies.