It doesn’t really matter where you come from, one thing that you cannot deny is that contracts form an integral part of people’s lives. Quite a good number of people take part in contracts but never know they are actually taking part in these contracts. For instance, bilateral contracts are so common these days but many people do not even know when they take part in them.
Let’s see what is the definition of Bilateral contract.
What Is The Meaning Of A Bilateral Contract?
A bilateral contract simply means a contract between two people or even more. It could also be a contract between an individual and a company. In the simplest terms, a bilateral contract is a legal agreement between two or more parties. One of the mistakes that people make is to think that bilateral contracts have to be in writing.
However, this is never the case. These contracts do not always have to be written; they can also come about as a verbal agreement between two people. For instance, if you are in a restaurant and you expect the restaurant attendant to get you money and services in exchange for money then that qualifies to be called a contract.
On the other hand, this contract can also be in writing like a lease between two parties. This is the bilateral contract legal definition.
Example Of Bilateral Contract In RealEaste
Any agreement between a tenant and a landlord also qualifies to be called a bilateral contract. Being this way, it is right to say that some of these contracts are well known to many people. In fact, people have gotten into bilateral contracts before.
Difference Between Bilateral Contracts And Unilateral Contracts
You know what is the meaning of the bilateral contract. These contracts are more like a mutual contract before doing any legal steps.
Here are a few differences between bilateral contracts and unilateral contracts.
No Of Inquires:
There have been a good number of inquiries about bilateral contracts and unilateral contracts. Some people confuse these contracts while others think that they are the same which is not the case. There exists a well-defined difference between unilateral and bilateral contracts.
Whereas a bilateral contract means a contract between two parties a unilateral contract on other hand means a promising one makes. It could be a promise to do something by an individual which is then done or not done afterward.
A good example of this is when someone loses a property like a ring and then promises to reward anyone who finds it.
In the bilateral contract, the right is sought and found then the person who made the promise has an obligation to pay back in reward as promised. On the other hand, the best example of a bilateral talk is when someone agrees to sell a house for instance.
In such a case, there has to be an agreement between the two parties involved in this case. Both the seller and the buyer have to agree for this house to be sold and the contract effected.
Does A Lease Fall In The Category Of Bilateral Contracts?
Having talked so much about a bilateral contract there are various areas that people fall into the category of bilateral contracts. For instance, there has been the issue of a lease which many people seek to know whether it falls in the category of a bilateral contract or not.
A lease without any doubt falls in the category of a bilateral contract. The reason why this is the case is very simple, it involves two or more people. For instance, in this case, there is the landlord and the person leasing the property which is very essential in helping know where this contract falls.
Being that this contract involves more than one person puts it squarely in the category of bilateral contracts. Given that a lease is part of a contract means that each one of the parties involved in this case has the obligation to honor part of their agreement. Failure to do so might lead or result in some kind of consequences in the end.
Is Employment A Unilateral Contract Or A Bilateral Contract?
The contest of unilateral vs bilateral contracts has seen so many names mentioned in this process. For instance, quite a good number of people have been enquiring to know whether employment is a unilateral contract or a bilateral contract. The answer to this yet again is very simple, this is a bilateral contract, period.
When signing an employment agreement, the chances are you are going to discuss this with your employer. Given that there will be more than one person, in this case, means that this qualifies to be termed as a bilateral contract. You might have engaged in discussions with more people but it doesn’t really matter, it is a bilateral contract that way.
An employment agreement in all cases has always been considered to be a bilateral contract. In fact, any kind of agreement between two or more people is always regarded as a bilateral contract. A unilateral contract only applies to one person alone.
What Happens In Case There Is A Breach Of Contract?
There are many types of contracts among them unilateral contracts and bilateral contracts as well. Normally, when a contract is signed it is expected that the people involved honor their side of the bargain. This can happen at the same time or at different times depending on the two people involved and what their pledges were.
However, there are cases where one party might for some reason decide not to honor their side of the bargain. In such a case, the party feeling aggrieved might decide to take action depending on the extent of the inconveniences caused by this. In some cases, one party might even decide to go to court to seek justice on the same issue.
Frequently Asked Questions About Bilateral Contract
Name A Real Life Bilateral Contract?
Marriage is a Bilateral contract. An agreement to marry someone and a Bilateral contract between two is called marriage. And in marriage, there is only a mutual promise between the two.
When Can You Use A Bilateral Contract?
Any type of sales agreement is an excellent example of a bilateral contract. For example, a car buyer may agree to pay the seller a certain amount of money. This is a Bilateral Contract.
Is The Bilateral Contracts An Offer?
A bilateral contract is a legally binding document that is created during the exchange of mutual promises. Yes, you can address the Bilateral Contract as an offer.
What Type Of Agreement Is The Bilateral Contract?
A bilateral contract agreement is a promising act. Here two parties promise each other certain acts. Before the money exchange, there were no such legal agreements. This is the reason these agreements are addressed as promising legal acts.
The unilateral vs bilateral contract is an issue and discussion that has been around for a long now. The discussion above looks deeply into this issue of bilateral and unilateral contracts. From the text, you will find out about the application of this contract and other things about the same.