Certified Residential Appraiser Practice Exam

In an express contract, the terms are:

1. Inferred from actions

2. Explicitly stated

3. Generally ambiguous

4. Applicable only in real estate scenarios

The correct answer is: Explicitly stated

In an express contract, the terms are explicitly stated, meaning that all parties involved have clearly articulated their intentions, obligations, and rights either verbally or in written form. This clarity ensures that each party knows exactly what is expected of them, thus reducing the potential for misunderstandings and disputes. The explicit nature of these terms distinguishes express contracts from implied contracts, where the obligations can be inferred from the actions or circumstances of the parties. This clear articulation is particularly important in various contexts, as it establishes a solid foundation for enforceability. When a dispute arises, courts tend to favor the stipulations laid out in express contracts, as there is little room for interpretation. The effectiveness of express contracts relies heavily on this clarity, which enhances their reliability in legal frameworks, whether in real estate or other fields.