Difference Between Bilateral Contract And Unilateral Contracts

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This case study is based on contract (or informally known as an agreement in some jurisdictions) that can be enforced by the law between two or more parties to do something or to abstain from doing something. In order for a contract to be formed, the involved parties must get to mutual assent. Therefore, a contract is a mutual agreement, which creates legally binding and duties between the parties. Learning the difference and similarity between different kinds of contracts can help the learners to find the way of related legal matters with confidence.

a) Contracts
i. Bilateral contracts and unilateral contracts
Bilateral contracts and unilateral contracts are something many people deal with on a daily basis, even though they aren 't always aware of these contracts. A bilateral contract is a legal agreement between at least two parties or groups promising to obligate in a legal manner to perform an act in exchange for the other party to act in future. Most of the businesses and personal contracts fall into the bilateral contracts category; whereas, unilateral contract is a legal agreement undertaken by one person or group alone promising to pay in exchange for other’s performance, Errington v Errington [1952]. In the contract law, unilateral contracts allow only one person to make a promise or agreement. The common example of a unilateral contract is with insurance contracts. The most important difference between bilateral contracts and unilateral contracts is the number of

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