Word Watch · Term 20 of 30 · 0:54
Bilateral vs. unilateral
ProductionIllustrated Click2CE lesson; AI-assisted production with Sarah narration
In brief
A bilateral contract exchanges promises; a unilateral contract requests an act in exchange for a promise.
Example
When buyer and seller exchange promises to buy and sell, the exchange is bilateral.
TranscriptRead along, or select a timestamp to jump there
- Ask what is exchanged to create the obligation.
- In a bilateral contract, one promise is exchanged for another
- promise.
- A buyer promises to pay, and a seller promises to
- convey, on the agreed terms.
- In a unilateral contract, the offer asks for an act
- in exchange for a promise.
- Think of a reward offered for returning a lost item.
- The requested performance is the key to acceptance.
- Do not count the number of people or signatures to
- decide the category.
- Compare promise for promise with promise for performance.
- Rules about beginning performance and revocation can depend on the
- circumstances and governing law.
- Quick check:
- buyer and seller exchange promises to buy and sell.
- Which pattern is that?
- Bilateral.
- Each side makes a promise.
