What type of contract is established when all parties clearly express the terms of the agreement?

In the context of contract law, an express contract is established when all parties to the agreement clearly communicate the terms either verbally or in writing. This type of contract is characterized by explicit statements regarding the intentions and obligations of each party involved. The clarity in communication helps prevent misunderstandings and ensures that all parties have a mutual understanding of the terms.

Express contracts are commonly used in various transactions, including real estate agreements, where specific details such as price, property description, and closing dates are distinctly outlined and agreed upon. This explicitness provides a solid foundation for enforcing the agreement, as it leaves little room for ambiguity about what each party is entitled to and responsible for.

In contrast, an implied contract may arise from the actions or circumstances of the parties rather than clear statements, making it less straightforward. A unilateral contract involves a promise made by one party in exchange for an act by another, while a bilateral contract requires a mutual exchange of promises. Thus, the distinct clarity and mutual understanding of the terms define the express contract as the correct choice in this situation.