Difference between revisions of "Bilateral contract"
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This is in contrast with a [[unilateral contract]], which is a promise by one side in exchange for performance (work) by the other side. | This is in contrast with a [[unilateral contract]], which is a promise by one side in exchange for performance (work) by the other side. | ||
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Revision as of 18:24, April 23, 2008
A bilateral contract is an agreement consisting of mutual promises by both sides of the agreement. A classic example of a bilateral contract is a promise by the owner of a house to sell it to another, who promises to buy it. At the time of the agreement, each side makes promises to each other.
This is in contrast with a unilateral contract, which is a promise by one side in exchange for performance (work) by the other side.