What is an express agreement?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

An express agreement refers to a contract in which the terms are clearly outlined and understood by both parties, typically using specific language. This clarity in communication ensures that each party knows their obligations and rights, reducing the potential for misunderstandings or disputes. In formal contracts, express agreements often include detailed descriptions of the actions required, payment terms, and any other relevant conditions, thereby making the agreement legally enforceable.

An express agreement can be made either verbally or in writing, but the key distinguishing feature is that the terms are explicitly stated, leaving no room for ambiguity regarding the expectations of each party. This contrasts with implied agreements, where the terms might be inferred from actions or circumstances rather than clearly articulated.

The context provided by the other options helps to highlight the characteristics of express agreements. For instance, while a strictly verbal agreement may qualify as express, it does not encompass all express agreements since written agreements also fall into this category. A unilateral understanding implies that only one party is bound to act, which does not align with the mutual agreement aspect of express contracts. Lastly, the notion of a non-binding agreement is contrary to the nature of express agreements, as they are intended to create enforceable obligations.

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