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').
Common in these contract types
Related terms
Related contract clauses
Frequently asked questions
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