Express Agreement Definition in Business: Understanding the Basics
In any business relationship, it`s important to have clear terms and conditions that outline the responsibilities and expectations of each party involved. This is where an express agreement comes in handy. An express agreement is a legally binding agreement between two parties that outlines the terms of a contract, project, or service.
In simple terms, an express agreement is a written contract that clearly spells out the terms and conditions of the agreement. This type of agreement is « express » because the terms are explicitly stated and agreed upon by both parties. This ensures that there is no confusion or ambiguity surrounding the agreement.
The express agreement is an essential document in business that protects both parties from potential issues that may arise from misunderstandings or disagreements. It outlines the rights and obligations of both parties, including payment terms, deadlines, clauses on confidentiality, intellectual property rights, and dispute resolution.
For instance, an express agreement between a freelance writer and an online publication may specify that the writer will be paid a certain amount per article, the deadline for submission, and the publication`s requirements for the content. The agreement may also include a confidentiality clause that prohibits the writer from disclosing any confidential information about the publication.
Express agreements are especially necessary for businesses that work with contractors or consultants. They help to establish clear communication and expectations between the parties involved, so that both parties can confidently proceed with the work at hand.
It`s important to note that an express agreement can be either verbal or written. However, written agreements are more enforceable and easier to prove in court, should any disputes arise. In fact, some agreements may require a written contract to be legally binding. Verbal agreements, on the other hand, are more difficult to enforce since there is no tangible proof of the agreed-upon terms.
Ultimately, the express agreement serves as a reference point for both parties throughout the duration of the agreement. It ensures transparency and accountability, and helps to establish trust in the business relationship. A well-written and carefully reviewed express agreement is a critical tool in any business transaction and is an essential part of any business strategy.