Legal Definitions - bilateral act

A bilateral act refers to a legal action or event that involves and requires the participation or agreement of two distinct parties or entities. In such an act, both sides typically have roles, obligations, or rights that arise from their mutual involvement.

• Example 1: A Sales Contract for a Car

  When an individual agrees to buy a car from a dealership, they enter into a sales contract. This is a bilateral act because it involves two parties: the buyer and the seller. The buyer has the obligation to pay the agreed-upon price, and the right to receive the car. The seller has the obligation to deliver the car, and the right to receive payment. Both parties' actions and agreements are essential for the transaction to occur and be legally binding.

• Example 2: A Treaty Between Two Countries

  Consider a trade agreement signed between two sovereign nations, such as a pact to reduce tariffs on imported goods. This constitutes a bilateral act in international law. It requires the negotiation, agreement, and ratification by both countries involved. Each nation undertakes specific obligations (e.g., lowering tariffs) and gains specific rights (e.g., improved access to the other's markets), making it an action with two distinct, participating sides.

• Example 3: Co-signing a Loan

  If two individuals decide to co-sign a loan from a bank to purchase a property, this is a bilateral act involving the two co-signers and the bank. From the perspective of the co-signers, their joint agreement to take on shared financial responsibility for the debt is a bilateral act between them and the lending institution. Both individuals are equally bound by the loan terms and share the obligation to repay, demonstrating the two-sided nature of their commitment to the bank.