From the point of view of mode of creation a contract may be express or implied or constructive.
1. Express contract. Where both the offer and acceptance constituting an agreement enforceable at law are made in words spoken or written, it is an express contract. For example: A tells B on telephone that he offers to sell his car for Rs. 20,000 and B in reply informs A that he accepts the offer, there is an express contract.
2. Implied contract. Where both the offer and acceptance constituting an agreement enforceable at law are made otherwise than in words i.e., by acts and conduct of the parties, it is an implied contract. Thus, where A, a coolie in uniform takes up the luggage of B to be carried out of the railway station without being asked by B, and B, allows him to do so, then the law implies that B agrees to pay for the services of A, and there comes into existence an implied contract and N is under obligation to pay to M. It is relevant to state in respect of mode of creation, certain contracts may be a mixture of the ‘express’ and ‘implied’ types of contracts, that is, where out of the two components of an agreement, namely, offer and acceptance, one is expressed in words and the other is implied from acts and circumstances. Such contracts may be called as contracts of mixed character. For example, A offers to buy B’s scooter for Rs. 4,000 and B accepts the offer by sending the scooter itself. Here A’s offer is expressed in words and B’s acceptance is implied form his conduct. It is a contract of mixed character.