Discuss about the Expressed verses impressed contract.
Expressed verses impressed contract
There are basically two types of contracts that are discussed in this case: the implied and the expressed contracts.
This is the type of contract in which the proposal of an offer and the acceptance of the proposal that leads to an agreement in a business are expressed verbally or in terms of writing. This contract comes to be when two people discuss the terms of an agreement and the terms of their promises (Martin 2012). The expressed contract does not need to be put down in writing nor should it be formal. However, the contract needs that the parties express their intensions with each other and come to an agreement.
Avinash wants to purchase a photographic portrait of an Australian Olympic champion that he found in Magda’s website. Avinash was going through the website and found this portrait of Paris Stilton that he liked. He had an expressed contract with Magda where they agreed on their payment terms and deadline of purchase. This can be defined as an expressed contract because the terms are clearly stated. A contract has six elements within it:
The offer. In this case, Avinash found a beautiful photographic portrait and he offered Magda an offer which they then discussed and resulted to a standard agreement of $1800. Then secondly, is the acceptance of the offer. Avinash agrees to the offer proposed after thinking through it and seeing it fair. Thirdly there is the deliberation or what is commonly known as consideration. Avinash had to consult the wife on the purchase issue and Magda also has to consider this and therefore gives a span of time to Avinash. In this case both the parties considered each other’s circumstances. Then there is the mutual assent of the parties where in this case, both Magda and Avinash mutually agreed to sell and buy the portrait. The two are of legal age and mental capacity to make the contract. There is also no illegal issue that would prevent the contract and therefore their expressed contract has qualified for a contract even though at the end of the day, Avinash do not get to go home with the portrait.
Even though this contract was not formal, it was the circumstance that forced it to be the way it was reinforced. The expressed contract is not strict on formality or writing but can be closed when the circumstance presents itself (Jonathan 2017).
This is the type of contract that has been affected by the activities or behavior of the involved parties (Martin 2012). In other simpler terms, it is a contract that is made when the elements of acceptance and offer are made without the use of words. This type of contract happens when the two concerned parties intend it to happen. In this case, Magda sold the photographic portrait to Elton with no offer nor acceptance elements involved. This happened because she allowed to happen and of course she got a better offer than that of Avanish.
The implied contract can be of two types:
Implied by Law: In this case, the parties have no intentions to get into a contract. However, the law requires that the parties get into an agreement irrespective of the feeling of the parties towards each other (Koffman and MacDonald 2008). Example; If Moses gave Lucy Hilda’s books by mistake, then it is the obligation of Lucy to return the books to Hilda. In this case no intention of the contract was there but now a contract has to be formulated due to the circumstances.
Implied by fact: In this kind of contract, the agreement is made between the parties involved with the basis of the circumstances and actions that are in place (Allan 2014). In this case, Magda made an implied contract implied by fact. This is because The last agreement she entered in with Elton was not defined nor were the offers and acceptance agreed upon in words. In addition, the circumstance of the agreement was favorable for Magda. Considering that Avanish was late in informing his decision and also Elton offered a better offer than that of Avanish.
The Implied contract is expressed through implication and not verbally like the expressed contract. Magda’s and Avanish’s contract was expressed since the terms were verbally communicated. However, that of Magda and Elton was implied since Elton bought the portrait with no much haggling on the price and formalities
Allan Farnsworth., 2014. Contracts. Aspen law and business. 4th edition
Jonathan, J. May 2017. Contracts. Cornell law school.
Koffman, L and MacDonald, E. 2008. The contract of Law. Oxford University Press.
Law Teacher. November 2013. The main Types of Contracts. Retrieved from/; https://www.lawteacher.net?Free-law-essays/Commercial -laws/the-main-types-of- contracts-commercial-law/Essay.
Martin, E. 2012. The oxford dictionary of Law. London: OUP.
Surbhi, S. June 2017. Difference between express contract and implied contract. Retrieved on June 30, 2017 from: Keydifferences.com/differences-between-express-and-implied- contract.html