Difference between revisions of "Bilateral contract"
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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. | 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 | + | This is in contrast with a [[unilateral contract]], which is a promise by one side in exchange for performance (work) by the other side. |
[[category:legal terms]] | [[category:legal terms]] | ||
Revision as of 17:14, September 28, 2007
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.