Bilateral Contract

A bilateral contract is an agreement between two parties where each promises to do something for the other. For example, if one person agrees to sell a car and the other agrees to pay a specific amount for it, both are making commitments. These agreements can be documented in writing to clarify the terms, such as the price and delivery date, making it easier to enforce if there's a dispute. Essentially, a bilateral contract is a mutual exchange of promises, where each party relies on the other to fulfill their part of the deal.