Louisiana Bail Bonds Practice Exam

What defines an express contract?

1. A contract based on verbal agreements

2. A contract created by explicit language

3. A contract inferred from behavior

4. A contract with no formal signature

The correct answer is: A contract created by explicit language

An express contract is characterized by clear and explicit language that outlines the terms and conditions agreed upon by the parties involved. This type of contract is typically established through direct communication, whether in writing or spoken words, where the terms are clearly articulated. The defining feature is that the intent and obligations of the parties are unmistakably stated, leaving little room for ambiguity. This clarity allows all parties to understand their rights and duties with regard to the contract, which is crucial for enforceability. In contrast, contracts based on verbal agreements do not necessarily have the explicit language that defines express contracts—they may lack the necessary detail or formal recognition. Likewise, contracts inferred from behavior reflect implied agreements rather than being clearly stated, and those without formal signatures may not meet the legal criteria for enforceability, depending on the jurisdiction.