Simple English definitions for legal terms
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A bilateral contract is when two people or groups make promises to each other. Each person is responsible for keeping their own promise and making sure the other person keeps theirs. This is different from a unilateral contract, where only one person makes a promise. Examples of bilateral contracts include buying and selling things, getting a job, renting a place to live, and getting a warranty for a product.
A bilateral contract is a type of contract where both parties make promises to perform certain actions. Each party is both an obligor (someone who is obligated to do something) and an obligee (someone who is owed something) in the contract. This is different from a unilateral contract, where only one party makes a promise.
These examples illustrate the concept of a bilateral contract because in each case, both parties are making promises that are contingent upon the other party fulfilling their own promise. If one party fails to fulfill their promise, the other party may have legal recourse to enforce the contract.