New York Real Estate Salesperson ExaminationContractsEasy
A landlord and a tenant enter into a lease agreement for a commercial property. This agreement specifies the tenant will pay $5,000 per month for five years. This type of contract, where all terms are explicitly stated, is known as what?
- AA unilateral contract.
- BAn executory contract.
- CAn implied contract.
- DAn express contract.
Show answer & explanationAnswer & explanation
Correct answer: D. An express contract.
An express contract is one where the terms and conditions are clearly stated, either orally or in writing, as opposed to being inferred from actions.
Why the other options are wrong
- A. A unilateral contract involves a promise by one party in exchange for an act by another, not mutual promises for clearly stated terms.
- B. An executory contract is one that has not yet been fully performed by both parties, which this lease would be, but it describes the stage of performance, not how it was formed.
- C. An implied contract is formed by the actions or conduct of the parties, not explicit words.
Express Contract
A contract in which the terms and conditions are clearly stated, either verbally or in writing, by the parties involved.
- Terms are explicitly agreed upon.
- Can be oral or written.
- Opposite of an implied contract.
Memory trick: Express contracts say it all, no guessing allowed.