Which statement is true about an express contract?

• A. The terms are fully and explicitly stated in words, oral or written
• B. It must be in writing to be enforceable
• C. It cannot be terminated without notice
• D. It requires no consideration

Answer: (A)

An express contract is formed when the terms are stated in explicit words, either orally or in writing. This explicit articulation of terms distinguishes express contracts from those formed by conduct (implied contracts). Because the terms are clearly spelled out, the agreement is enforceable as long as the usual elements—offer, acceptance, consideration, capacity, and legality—are present. It does not have to be in writing to be enforceable; writing is required only for certain types of agreements under the Statute of Frauds. Termination follows the contract’s own provisions, so it can be ended with notice or upon breach depending on what the contract says. Consideration is generally needed for validity, though there are rare exceptions.