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Express vs Implied Contract

An express contract is a mutually binding written agreement.  However, an express contract can be an oral agreement.  The elements of an express contract are mutuality of intent, consideration, lack of ambiguity in the offer and acceptance.

An implied contract results or arises based on or as a result of the actions or conduct of the parties.  An implied contract is or at least can be a legally enforceable agreement arising from the conduct, the intentions and the relationship of the parties.  It also may arise as a result of the application of the legal principle of equity.  The parties may also ratify an unauthorized commitment and thereby bind the parties to the contract.

Although the general rule is that an employer is not bound by the unauthorized acts of its employees, courts may find that in some cases the party seeking to enforce the contract may find that the employee had implied authority to contract if the employees actions are deemed to be an integral or inherent part of the employee's assigned duties. 

Copyright 2009 by Michael C. Dennis.  All Rights Reserved.