What distinguishes an express contract from an implied contract?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

An express contract is characterized by the fact that its terms are clearly stated, either in written form or verbally. This distinct clarity sets express contracts apart from implied contracts, where the terms are not explicitly stated but rather inferred from the actions, conduct, or circumstances surrounding the parties involved.

In an express contract, all parties involved have a clear understanding of their obligations and rights due to the explicit nature of the agreement. This can include everything from formal written documents to verbal agreements made in a clear and direct manner. The explicit communication helps to eliminate ambiguity, making it easier to ascertain the intentions of the parties.

The other options diverge from this principle. For instance, it is not accurate to say express contracts are based solely on written agreements, as they can also be verbal. Similarly, implied contracts do not inherently require direct verbal communication; in fact, they arise from the behavior and circumstances of the parties, rather than any explicit discussion. Lastly, while many implied contracts can be enforceable, there are scenarios in which they may not hold up in court, especially if the terms are too vague or if there's insufficient evidence of an agreement. Thus, the clarity of an express contract in its communication makes option C the correct choice.

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