Contract Glossary
Bilateral Contract
Definition
A contract where both parties make promises to each other. You promise to deliver a website; the client promises to pay $5,000. Most business contracts are bilateral — both sides are committing to do something.
In Practice
Almost every freelance agreement, service contract, and employment agreement is a bilateral contract. You promise to do the work; they promise to pay you. If either side breaks their promise, the other can claim breach. Compare this with a unilateral contract, where only one side makes a promise — like a reward poster ('I'll pay $500 to whoever finds my dog').
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Frequently asked questions about bilateral contract
In a bilateral contract, both sides make promises (I'll build your website, you'll pay me). In a unilateral contract, only one side promises — and the other side accepts by performing an action, not by promising. Insurance policies, contest rules, and reward offers are common unilateral contracts.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.