A bilateral contract is a legal agreement between two parties in which both parties make promises to each other. In a bilateral contract, each party is obligated to perform a certain action or provide something of value to the other party in exchange for the performance or promise of the other. This type of contract is the most common form of contract and is contrasted with a unilateral contract, where only one party makes a promise in exchange for an action by the other party. Bilateral contracts can be formal or informal and are enforceable by law as long as they meet the requirements of a valid contract, such as mutual assent, consideration, legality, and capacity.
n. an agreement in which the parties exchange promises for each to do something in the future. Susette Seller promises to sell her house to Bobby Buyer and Buyer promises to pay Seller $100,000 for it.” This is distinct from a “unilateral contract,” in which there is a promise to pay if the other party chooses to do something. I’ll pay you $1,000 if you’ll stop smoking.” These are basically academic differences which are only important in the rare instance in which one person has acted in anticipation that the other will have obligations as well.
A bilateral contract is a legally binding agreement between two parties in which both parties make promises to each other. Each party is obligated to fulfil their promise in order for the contract to be considered valid. If one party fails to fulfil their promise, the other party may have legal recourse to enforce the contract or seek damages.
A bilateral contract is a legally binding agreement between two parties in which both parties make promises to each other.
The essential elements of a bilateral contract include an offer, acceptance, consideration, and mutual assent.
A bilateral contract can be oral or in writing, but certain types of contracts, such as those involving real estate or sales of goods over a certain value, may need to be in writing to be enforceable.
If one party fails to fulfil their promise in a bilateral contract, the other party may have legal remedies such as suing for damages or specific performance.
In general, minors can enter into bilateral contracts, but they have the option to void the contract if they choose to do so.
A bilateral contract can be terminated or cancelled if both parties agree to do so, or if there is a valid legal reason for termination such as breach of contract.
A bilateral contract can be modified if both parties agree to the changes and there is consideration for the modification.
In a bilateral contract, both parties make promises to each other, while in a unilateral contract, only one party makes a promise in exchange for an act from the other party.
A bilateral contract may be unenforceable if one party was under duress or undue influence when entering into the contract, as these factors can invalidate the mutual assent required for a valid contract.
The statute of limitations for enforcing a bilateral contract varies by jurisdiction, but it typically ranges from 3 to 10 years. It is important to consult with a legal professional to determine the specific statute of limitations for a particular contract.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 6th April, 2024.
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