BILATERAL CONTRACT Meaning and
Definition
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A bilateral contract is a legally binding agreement between two parties in which both parties make reciprocal promises to perform specific acts or duties. It is a type of contract that involves an exchange of mutual promises, creating obligations for both parties involved. In a bilateral contract, each party agrees to provide certain benefits or services to the other in exchange for the same. This type of agreement is commonly seen in various business transactions, such as sales contracts, employment contracts, and service agreements.
The key characteristic of a bilateral contract is that both parties are legally bound to fulfill their obligations as stated in the agreement. Each party's promise is the consideration for the other party’s promise, and the agreement is enforceable by law. If either party fails to fulfill their obligations, they can be held liable for breach of contract and may be subject to legal consequences and potential damages.
Bilateral contracts stand in contrast to unilateral contracts, where one party makes a promise or offer that can only be accepted through specified performance by the other party. In a bilateral contract, both parties make promises and expect performance from each other. The promises are mutually dependent on each other, creating a balanced and reciprocal agreement.
Common Misspellings for BILATERAL CONTRACT
- vilateral contract
- nilateral contract
- hilateral contract
- gilateral contract
- bulateral contract
- bjlateral contract
- bklateral contract
- bolateral contract
- b9lateral contract
- b8lateral contract
- bikateral contract
- bipateral contract
- bioateral contract
- bilzteral contract
- bilsteral contract
- bilwteral contract
- bilqteral contract
- bilareral contract
- bilaferal contract
Etymology of BILATERAL CONTRACT
The word "bilateral" is derived from the Latin words "bi-" meaning "two" and "latus" meaning "side". The term "contract" comes from the Latin word "contractus", which means "drawn together" or "bound".
Hence, the etymology of the phrase "bilateral contract" can be understood as a contract that involves two sides or parties who are mutually bound by their agreed-upon obligations and terms.
Similar spelling words for BILATERAL CONTRACT
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