What is essential for a contract to be classified as an express contract?

For a contract to be classified as an express contract, it is essential that all terms are clearly stated and agreed upon by the parties involved. An express contract is characterized by the explicit communication of the agreement, where the parties articulate their intentions and the specifics of their arrangement, which can be done either verbally or in writing. This clarity is vital as it minimizes misunderstandings and provides a clear framework for enforcement.

The necessity of having all terms stated ensures that both parties know their rights and obligations, leading to a mutual understanding that is fundamental to enforceability. Without this clarity in the articulation of terms, the parties may have differing interpretations of their agreement, which could lead to disputes or legal ambiguities. Therefore, the emphasis on clearly stated terms is what fundamentally distinguishes express contracts from implied contracts, where terms may be inferred from actions or circumstances rather than clearly articulated.