BUSN150-1205A-03 Legal and Ethical Environment of Business
An express contract is created with words either written or spoken. This also implies that all of the parties involved are aware and agree that a contract is being entered into. An example of an express contract would be one person offering to sell an item they own to another party for a set price, the other party agrees verbally and they shake hands on the deal. This is an express contract and is enforceable by law; if the payer decides later that he or she does not want to pay the seller can seek recourse by law. Another example of an express contract would be your cellular agreement, when you go into a cellular store or purchase the company offers you a discounted cell phone in exchange you agree to use their cellular service for a set period usually one or two years. These contracts usually have pre-set penalties if you break the contract before the agreed upon time. T-Mobile has two types of pre-set penalties if you break the contract before 90 days you will not only pay the early out fee but you will also be responsible for the full purchase price of the phone. Unlike the hand shake deal above you also agree that if there is a conflict between the parties that you agree to mediation instead of outright suing the company. These two examples illustrate that express contract can be simple or complicated but they are by nature of the way the agreements were formed (spoken or written) both examples of an express contract. Implied contracts are contracts that are created when the existence and or terms of the contract are created by the parties conduct. An example of an implied contract would be perhaps you go to a salon to have your hair cut, once you sit in the chair you and the stylist have entered into a contract where they stylist is obliged to provide you a haircut and you agree to pay for said haircut. Another example of an implied contract would be going to the...
References: 1.) http://.uslegal.com
2.) Przyblewski, F (2002) Contract Elements Contract Formation, from the world wide web on November 25, 2012 from http://www.seniormag.com/legal/contractelements.htm
3.) Introduction to Business Law Editorial Board Words of Wisdom, LLC
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