Education & Reference
Posted in: Education & Reference.
Tagged: bilateral and unilateral contracts · personal experience
Bilateral contract :=A legal agreement where both parties involved give mutual promises that they both are legally obligated to perform an act in exchange for the other party’s act in future. Each party is both promisor and promisee . It is also called "reciprocal" contracts.
Unilateral contract :=is a legal agreement in which only one of the two parties makes promise to pay in exchange for performance. It is one-sided contract where only one party (known as offeror) makes a promise to pay in exchange for an act or work done by another party (known as the offeree.)
Note:- If the offeree acts on the offeror’s promise, the offeror is legally obligated to fulfill the contract, but an offeree cannot be forced to act (or not act), because no return promise has been made to the offeror. After an offeree has performed, only one enforceable promise exists, that of the offeror.
Example:-Reward offers are usually unilateral contracts.
For example, if someone offered to drive you to work on Mondays and Tuesdays in exchange for your promise to return the favor on Wednesdays and Thursdays, a bilateral contract would be formed binding both of you once you provided consideration by accepting those terms.
But if that same person offered to pay you $10 each day you drove him to work, a unilateral contract would be formed, binding only upon the promisor until you provided consideration by driving him to work on a particular day.
Bilateral is an agreement drawn up with input from both sides. Unilateral is drawn up by one side and the other side can either take it or leave it, as in a credit card agreement.
Look up "BI" and "UNI" in ANY DICTIONARY and you will have your answer.
bilateral-having 2 sides; unilateral-one sided ,contract means a legally binding agreement.So unilateral contract means onesided legally binding agreement and bilateral agreement means bothsided legally binding agreement
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