Common use of Bilateral Contracts Clause in Contracts

Bilateral Contracts. A bilateral contract is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods.

Bilateral Contracts. A bilateral contract is one where a promise legally binding contract formed by one the exchange of reciprocal promises. Here both parties are outstanding at the time of formation of the contract. In such a case, each party is exchanged a promisor and promise. They are also known as reciprocal contracts because mutuality of obligation is essential for their enforceability. In the case of bilateral contracts, an offer made is accepted in the form of a promise by the othercounter-promise. The exchange of promises is enough to render them both enforceableThey are very common in everyday life. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods.a) Unilateral