A bilateral contract is a type of agreement where both parties involved make promises to each other. This means that each party agrees to perform a specific action or refrain from doing something in exchange for the other party's promise. Most contracts are bilateral, as they require mutual consent and performance to be valid.
Bilateral contracts are commonly used in various areas of law, including civil, commercial, and family law. They form the foundation of many everyday agreements, such as sales contracts, service agreements, and lease agreements. Users can often manage these contracts themselves with the right tools, such as templates available from US Legal Forms, which provide professionally drafted legal documents.
Here are a couple of examples of abatement:
Example 1: A homeowner hires a contractor to renovate their kitchen. The homeowner agrees to pay a specified amount, while the contractor promises to complete the work by a certain date.
Example 2: A person agrees to sell their car to a friend. The friend promises to pay a specific price, while the seller agrees to transfer ownership of the car. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Enforces specific performance in certain contracts. |
| New York | Requires written contracts for agreements over a certain amount. |
| Texas | Allows verbal contracts in many situations, but written is preferred. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Bilateral Contract | A contract requiring promises from both parties. | Both parties are obligated to perform. |
| Unilateral Contract | A contract where only one party makes a promise. | Only one party is obligated to perform. |
| Void Contract | A contract that is not legally enforceable. | Cannot be enforced by either party. |
If you find yourself entering into a bilateral contract, ensure that both parties clearly understand and agree to the terms. It may be beneficial to use templates from US Legal Forms to create a legally binding document. If the situation is complex or if you have concerns, consider seeking professional legal advice to protect your interests.
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A bilateral contract requires promises from both parties, while a unilateral contract involves a promise from only one party.