What are the two types of terms in a contract?

In contract law, the two types of terms that define the obligations and expectations of the parties involved are express terms and implied terms.

Express terms are those that are explicitly stated in the contract, either verbally or in writing. These are clearly defined clauses that outline specific duties, rights, and responsibilities, leaving no room for ambiguity about what the parties have agreed upon.

Implied terms, on the other hand, are not explicitly stated but are nonetheless considered part of the contract. They may be inferred from the nature of the agreement, the conduct of the parties, or established legal principles. Implied terms help to fill in gaps in the contract where specific provisions may be lacking or where the parties have not outlined every detail.

The understanding of both express and implied terms is crucial as they collectively shape the contractual relationship, ensuring that all parties are aware of their obligations and what can be expected, even if those aspects were not directly articulated during negotiations.