Yes, that's correct. Contractual liability arises when a party fails to fulfill its obligations as outlined in a contract, which includes both explicit and implicit agreements and promises. Here's a breakdown:
- **Explicit Agreements:** These are clearly stated terms and conditions in the contract that both parties have agreed upon.
- **Implicit Agreements:** These are unspoken or assumed terms that are understood to be part of the contract, even though they are not explicitly written down.
When a party breaches these agreements, they are held liable for contractual damages, which may include compensation for losses suffered by the other party due to the breach.
