What is the key difference between express and implied contracts?

The key difference between express and implied contracts lies in how the terms are articulated and understood. Express contracts are those in which the terms are stated explicitly, either verbally or in writing. This clarity involves clear communication of the obligations and intentions of the parties involved, leaving no room for ambiguity.

In contrast, implied contracts do not have explicitly stated terms but are formed based on the behavior, actions, or circumstances surrounding the parties involved. For example, when you go to a restaurant, you don't formally agree to pay for the meal; however, your act of ordering implies that you will pay.

This distinction highlights the variety of ways in which agreements can be recognized under contract law, where express contracts provide clear documentation and communication, while implied contracts rely on contextual understanding and inferred intentions.