Certified Professional Public Buyer (CPPB) Practice Test

What characterizes an express contract?

1. It may only be oral

2. It includes informal agreements without any writing

3. It may be written or oral and meets formal contract requirements

4. It must include complex legal jargon

The correct answer is: It may be written or oral and meets formal contract requirements

An express contract is characterized by the clear and explicit terms that are either spoken or written, establishing the obligations and expectations of the parties involved. The defining feature of an express contract is that it meets the necessary requirements of a formal contract, which includes an agreement, consideration, legality, and mutuality. This means that express contracts can be either oral or written, as long as they convey distinct terms that are understood by all parties. The emphasis here is on the clarity and explicitness of the agreement, rather than the medium through which it is expressed. Therefore, the correct answer reflects the fundamental nature of express contracts, highlighting that they may take various forms while still adhering to the essential legal requirements of contract formation. The other options misrepresent the characteristics of express contracts, suggesting limitations or complexities that are not inherent to the definition. For instance, suggesting that an express contract may only be oral disregards the validity of written express contracts. Similarly, the notion that it includes informal agreements without writing overlooks the potential for clarity and explicitness in written agreements. Lastly, the assertion that it must include complex legal jargon is misleading, as express contracts can be entirely straightforward as long as they fulfill essential contractual elements.