An expressed contract is a legally binding agreement where two parties explicitly state the terms and conditions of the contract. In other words, both parties have agreed to the terms of the contract by putting it in writing or by verbal agreement. Examples of expressed contracts can be found in almost any industry. Here, we’ll take a closer look at some common examples of expressed contracts.
Employment Contracts
One of the most common examples of an expressed contract is an employment contract. An employment contract is a written agreement between an employer and an employee that outlines the terms and conditions of the employment. This agreement may include the job description, salary, benefits, the duration of employment, and the grounds for termination.
Service Contracts
Service contracts are agreements between a service provider and a client. These contracts outline the services to be provided, the expected timeline for delivery, and the cost of the services. For instance, a website design company may enter into a service contract with a client that outlines the scope of the project, the types of services to be offered, as well as the estimated time and cost of the project.
Sale of Goods Contracts
Another example of an expressed contract is a sale of goods contract. These types of contracts relate to the sale, purchase, and delivery of goods between two parties. The contract outlines the essential terms of the agreement, including the goods sold, the price, the delivery terms, and the payment terms.
Lease Agreements
Lease agreements are expressed contracts that pertain to the rental of property, whether it be residential or commercial. These agreements stipulate the terms of the lease, including the lease period, rent, security deposit, and other conditions. Landlords and tenants are required to sign the lease agreement to validate the contract.
Partnership Agreements
Partnership agreements are expressed contracts signed between two or more parties to form a partnership. These contracts outline the various responsibilities of each partner, the amount of capital invested, and how profits and losses will be shared. Partnership agreements are essential in limiting and managing risk for all parties involved.
Conclusion
Expressed contracts are a necessary aspect of any business transaction or agreement. They provide clarity and legal protection for both parties involved. From employment contracts to lease agreements, sales of goods contracts to partnership agreements, expressed contracts play an important role in ensuring that everyone involved understands the terms and conditions of the agreement. If you are entering into a business agreement, you should always seek legal advice to ensure that the contract is fair and meets your needs.