What Is the Difference between an Explicit and an Implicit Contract?

An explicit contract has terms that are clearly stated and agreed upon, either verbally or in writing. An implicit contract, or implied contract, is one where the agreement is inferred from the parties' conduct, actions, or circumstances, rather than being directly stated.

Smart contracts are fundamentally explicit because their terms are literally codified, but they may be governed by an implicit legal understanding or explicit terms of service.