Bilateral vs. Unilateral Contracts Sample Contracts
Bilateral Contracts vs. Unilateral ContractsBilateral vs. Unilateral Contracts • November 8th, 2018
Bilateral contracts are distinct from unilateral contracts, the primary difference being that bilateral contracts have reciprocal obligations. In a unilateral contract, Party A is under obligation to fulfill certain terms (usually a transfer of funds) if and only if Party B completes a specified task, but Party B is not actually obliged to complete the task if they don't want to. If such an agreement were bilateral, Party B could be found in breach of contract if they didn't complete the specified task. Because there is no guarantee that the task will be completed in a unilateral agreement, they are effectively never used in business.