Bilateral Contracts
A bilateral contract is an agreement between two parties where both make promises to fulfill certain obligations. For example, if you agree to sell your car for $5,000, you promise to deliver the car, and the buyer promises to pay that amount. The offer is made by one party, and the acceptance occurs when the other party agrees to those terms. This mutual exchange creates a legal obligation for both sides to follow through on their promises, ensuring that each party benefits from the arrangement.
Additional Insights
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A bilateral contract is an agreement between two parties where each makes a promise to the other. For example, in a car sale, the seller promises to transfer ownership of the car, while the buyer promises to pay a specified amount. Both parties are obligated to fulfill their promises for the contract to be valid. This type of contract contrasts with a unilateral contract, where only one party makes a promise that the other party can accept by fulfilling a specific action. In essence, bilateral contracts involve mutual obligations between the involved parties.