Bilateral Contract

Bilateral Contract
A bilateral contract is a reciprocal arrangement between two parties where each promises to perform an act in exchange for the other party's act. Each party is an (a person who is bound to another) to its own promise, and an obligee (a person to whom another is obligated or bound) on the other party's promise. A bilateral contract specifies a duty to act in exchange for another party's duty to act.

A bilateral contract, as opposed to a unilateral contract, is the type of contract that frequently comes to mind when contemplating contracts. It is a contract between two people or parties. An example of a bilateral contract would be the contract for the sale of a home. A home buyer agrees to pay the seller a certain amount of money in exchange for the title to the home; the home seller agrees to deliver the title in exchange for the specified sale price. When the contract is not fulfilled there is a breach in contract.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • bilateral contract — see contract Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. bilateral contract …   Law dictionary

  • bilateral contract — ➔ contract1 * * * bilateral contract noun [C] LAW ► a formal agreement between two people or groups that both promise to do something for each other → Compare UNILATERAL CONTRACT(Cf. ↑unilateral contract) …   Financial and business terms

  • bilateral contract — A contract that creates mutual obligations, i. e. both parties undertake to do, or refrain from doing, something in exchange for the other party s undertaking. The majority of contracts are bilateral in nature. Compare unilateral contract …   Big dictionary of business and management

  • bilateral contract — /baylaetaral kontraekt/ A term, used originally in the civil law, but now generally adopted, denoting a contract in which both the contracting parties are bound to fulfill obligations reciprocally towards each other; as a contract of sale, where… …   Black's law dictionary

  • bilateral contract — /baylaetaral kontraekt/ A term, used originally in the civil law, but now generally adopted, denoting a contract in which both the contracting parties are bound to fulfill obligations reciprocally towards each other; as a contract of sale, where… …   Black's law dictionary

  • bilateral contract — noun a contract involving mutual promises (each party is both promisor and promisee) • Hypernyms: ↑contract …   Useful english dictionary

  • Bilateral Contract —   A direct contract between the power producer and user or broker outside of a centralized power pool.   ***   A two party agreement for the purchase and the sale of energy products and services.   California Energy Comission. Dictionary of… …   Energy terms

  • bilateral contract — A contract under which each party promises or undertakes performance, the promise or the undertaking by the one furnishing the consideration for the promise or undertaking of the other, Christensen v Pugh, 84 Utah 440, 36 P2d 100, 95 ALR 608; a… …   Ballentine's law dictionary

  • bilateral contract — agreement between two parties …   English contemporary dictionary

  • contract — con·tract 1 / kän ˌtrakt/ n [Latin contractus from contrahere to draw together, enter into (a relationship or agreement), from com with, together + trahere to draw] 1: an agreement between two or more parties that creates in each party a duty to… …   Law dictionary

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