Bilateral and Unilateral Contracts

A bilateral contract involves a mutual exchange of promises between two parties. Each party commits to fulfilling their agreement, like a buyer promising to pay for a product while the seller agrees to deliver it. A unilateral contract, on the other hand, involves one party making a promise that the other party can accept by performing a specific action, such as a reward offer for finding a lost pet. In essence, bilateral contracts require promises from both sides, while unilateral contracts require an action to accept a single party’s promise.