Answer :
The given statement describes two types of contracts: express contracts and implied contracts. Let's break down each type:
1. Express Contract:
- An express contract is when both parties explicitly agree on the terms of the contract, either in writing or verbally.
- This type of contract clearly states the terms and conditions agreed upon by both parties.
- Example: Signing a lease agreement where all terms regarding rent, duration, and responsibilities are clearly outlined in a written document.
2. Implied Contract:
- An implied contract is created when acceptance is shown through conduct or actions, rather than through explicit agreement.
- This type of contract is based on the behavior of the parties involved, implying an agreement even if not explicitly stated.
- Example: Going to a restaurant, ordering food, and then eating it implies an implied contract to pay for the meal, even though there was no explicit agreement.
In summary, express contracts are based on explicit agreements, whether written or verbal, while implied contracts are based on actions and conduct that imply agreement between the parties. Both types of contracts can be legally binding, even if there is no written agreement, as long as there is mutual assent to the terms of the contract.
