Bilateral Contract
A bilateral contract is an agreement between two parties in which each party agrees to perform a specified act. The term “bilateral” refers to the fact that there are two parties involved in the agreement. The most common type of bilateral contract is a purchase agreement, in which one party agrees to buy goods or services from another party.
Other types of bilateral contracts include employment contracts, rental agreements, and loan agreements. In each of these cases, both parties agree to certain terms and conditions before entering into the contract. For example, an employment contract may stipulate that the employee will work for a certain number of hours per week and will receive a certain salary. A loan agreement may stipulate that the borrower will make regular payments over a period of time and will pay interest on the loan.
Bilateral contracts are typically written agreements that are signed by both parties. However, they can also be verbal agreements. It is important to note that oral agreements are generally more difficult to enforce than written agreements. This is because it can be more difficult to prove what was actually agreed upon if there is no written record of the agreement.