BILATERAL CONTRACT

 

The contract is an agreement that involves two or more parties and which bind all parties to reciprocal obligations. A reciprocal obligation is a duty owed by one party to the other. In other words, the reciprocal obligation can be defined as the agreement that binds parties. The breaking of the contract is known as breach of the contract Bilateral is a type of a contract commonly used and it has a promise which is binding on both parties.   The bilateral contract is most common in the United States. Each Party in the bilateral contract makes promises and fulfills certain obligations.  One party in the bilateral contract must offer a valuable goods or services to the other party. A bilateral contract where both parties offer valuable god or services is known as consideration and is considered to be binding to both parties.  The bilateral contract binds both parties and both parties exchange the promises where each promise is said to be enough consideration. The party making a promise is known as a promisor while the other party is known as promise. Each party is supposed to do certain tasks in the bilateral contract.  In cases where a minor enters into a bilateral contract with the adult, the contract automatically becomes unenforceable due to the minor’s age. For a  bilateral contract to be enforceable, there must be a mutuality of obligation. For a contract to become enforceable there must be involvement of the concept of reciprocity.  Consideration is the major part of any contract.  It is held that the moment a promise begins to do under the unilateral contract, it automatically becomes a bilateral and both parties are bound to certain performance.

Order Now