An express term is a requirement of a contract, written or oral, that has been specifically mentioned and agreed upon by the parties to the contract at the time of its creation.

Different types of express terms can be included in contracts, and each kind carries its own consequences if breached. Review the following express term categories:

1. Conditions are major express terms of a contract. If a condition is breached, the contract can be terminated and damages claimed.

2. Warranties are minor express terms of a contract. If a warranty is breached, damages can be claimed but the contract cannot be terminated.

3. Innominate terms (also called intermediate terms) can be major or minor express terms of a contract. Consequences of breach must be considered before a decision to terminate contract is made.

Action Steps
The best contacts and resources to help you get it done

Obtain express term information online

Making sure you understand what constitutes a written or oral express term in contract law is crucial for the operation of a successful business. Educate yourself about express terms and what they mean when dealing with a breach of contract or awarding of damages.

I recommend: See examples of express terms at tutor2u. Look at a case study provided by the International Risk Management Institute demonstrating what happens when a lawsuit is filed due to an express term breach of contract.

Understand the difference between an express term and an implied term

Stating all the obligations required under a contract is not probable, so understanding what implied terms are and how they relate to express terms is beneficial for all parties involved in contract negotiations. There are three ways in which terms can be implied in a contract: by custom, by statute, or by the court system.

I recommend: Check out the Encyclopedia of Law and Economics, which features a paper entitled, "Implied Terms and Interpretation in Contract Law." You will find the article under "General Contract Law," numbered 4400. View a court case provided by the US Supreme Court Center demonstrating the importance of an implied term.

Seek express term advice from an express term consulting company

Ask for help with navigating contract law from an express term expert to ensure you do not make any mistakes in drafting and understanding contract agreements. Find a consultant for express term information and advice in your area to make your job easier and to ensure contract negotiations run smoothly.

I recommend: Find a lawyer in your area to meet your business needs at Law Guru. You can search by business location or area of inquiry. View the services offered at WORLD Law Direct for small businesses. You can retain your own legal expert to review contracts and help you successfully tackle contract law at your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you understand the repercussions of breaching an express term or implied term that is included in a contract before signing an agreement.