Which term describes a contract whose terms and intentions are explicitly stated?

Study for the Chartered Property Casualty Underwriter 530 Exam with flashcards and multiple choice questions. Each question has hints and explanations to enhance your understanding and prepare you thoroughly.

Multiple Choice

Which term describes a contract whose terms and intentions are explicitly stated?

Explanation:
When terms and intentions are clearly stated, the contract is an express contract. Express contracts are formed by explicit promises and terms, whether written or spoken, so both sides know exactly what they are agreeing to, including duties, rights, price, and timelines. For example, a signed lease that spells out rent, length of tenancy, and responsibilities is an express contract. In contrast, implied contracts arise from actions or circumstances rather than explicit words, inferred from the conduct of the parties. A voidable contract is still valid at first but can be voided by one party under certain conditions, such as misrepresentation or duress, and is not about whether terms were stated. So explicit wording or writing defines an express contract.

When terms and intentions are clearly stated, the contract is an express contract. Express contracts are formed by explicit promises and terms, whether written or spoken, so both sides know exactly what they are agreeing to, including duties, rights, price, and timelines. For example, a signed lease that spells out rent, length of tenancy, and responsibilities is an express contract. In contrast, implied contracts arise from actions or circumstances rather than explicit words, inferred from the conduct of the parties. A voidable contract is still valid at first but can be voided by one party under certain conditions, such as misrepresentation or duress, and is not about whether terms were stated. So explicit wording or writing defines an express contract.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy