What describes a type of contract where the terms are fully set forth in writing and are agreed upon by all parties?

An express contract is defined by the explicit terms that are clearly articulated in writing and agreed upon by all parties involved. This clarity is essential, as it establishes a mutual understanding of rights and responsibilities, allowing each party to know exactly what is expected of them.

In contrast to other types of contracts, an express contract relies solely on the clear indications of agreement and intention laid out in the document. This kind of contract reduces ambiguity, minimizing the potential for misunderstandings or disputes, which can arise from vague or implied agreements.

Understanding express contracts is crucial for any adjuster, as it comes into play frequently in situations involving clear agreements, such as insurance policies, service contracts, and sales agreements. Recognizing their importance can help in effective claims handling and ensuring compliance with legal obligations.