Bilateral Contract Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Bilateral Contract, written in plain English, along with examples of how it is used.
What is Bilateral Contract?
( n) Bilateral Contract is the agreement between two parties promising to do a future action and a future counter action. In Bilateral contract both the activities happens on a future time.
History and Meaning of Bilateral Contract
Bilateral contract is a legal term that has been in use for centuries. The term refers to an agreement between two parties where each party promises to perform a future action and a future counter-action. Essentially, both parties are making promises to each other that will be fulfilled at a future point in time.
This type of contract is different from a unilateral contract, which involves one party making a promise to do something in return for an action taken by the other party. In a bilateral contract, both parties are making promises to each other.
Bilateral contracts are common in business and personal dealings, and they can cover a wide range of activities. Examples of bilateral contracts include employment contracts, purchase agreements, and lease agreements.
Examples of Bilateral Contract
- A leasing agreement between a landlord and tenant. The landlord promises to provide a safe and habitable living space while the tenant promises to pay rent regularly.
- Employment contracts between employers and employees. The employer promises to provide pay and benefits while the employee promises to perform their job duties to the best of their ability.
- A purchase agreement between a buyer and seller. The seller promises to provide goods or services while the buyer promises to pay for them.
- A prenuptial agreement between two people prior to getting married. Both parties promise to certain things in the event of a divorce.
Legal Terms Similar to Bilateral Contract
- Unilateral contract - a contract where one party makes a promise in return for an action taken by the other party.
- Express contract - a contract where the terms are stated either orally or in writing.
- Implied contract - a contract where the terms are not explicitly stated but are implied by the actions of the parties involved.
- Executed contract - a contract where all terms have been fulfilled and both parties have completed their obligations.