Bilateral and Unilateral Contract Example

Bilateral and unilateral contracts are two common types of contracts that play a significant role in the business and legal world. As a professional, it is essential to understand the differences between the two types of contracts and provide suitable examples to readers.

Bilateral Contract Example

A bilateral contract, also known as a two-way contract, is a mutual agreement between two or more parties. In a bilateral contract, both parties exchange promises, and both are obligated to fulfill their promises. For instance, a contract between a buyer and a seller is an example of a bilateral contract.

Suppose a buyer enters into a contract to purchase a car from a seller and agrees to pay $10,000 in exchange for the seller`s car. In this case, the seller promises to sell the vehicle, and the buyer promises to pay the agreed price. Once the buyer pays the $10,000, the contract is satisfied, and both parties have fulfilled their obligations.

Another example of a bilateral contract is an employment agreement. In this case, the employer promises to provide a job, and the employee promises to perform the assigned duties. The employment agreement is satisfied once the employee completes the work, and the employer pays the agreed salary.

Unilateral Contract Example

A unilateral contract, also known as a one-way contract, is an agreement where only one party is bound to fulfill a promise. In this type of contract, the promise is made by one party, and the other party`s acceptance is demonstrated by performing a specific action. A classic example of a unilateral contract is a reward offer.

Suppose a person offers a reward for finding a lost dog. In this case, the offeror is making a promise to pay the reward, but the acceptance is demonstrated by the finder of the lost dog. The contract is satisfied when the finder of the lost dog returns the pet and receives the reward.

Another example of a unilateral contract is a contest. In a contest, the sponsor offers a prize to the winner. To receive the prize, the contestant must perform a specific action, such as submitting an entry or answering a question. In this case, the offeror is making a promise to award the prize to the winner, and the acceptance is demonstrated by the contestant`s action.


Understanding the difference between bilateral and unilateral contracts is essential for businesses and individuals entering into agreements. A bilateral contract involves two or more parties exchanging promises, while a unilateral contract requires only one party to make a promise. Providing examples of both types of contracts helps readers understand the distinction between these two important legal agreements. As a professional, it is crucial to ensure that the article is informative, engaging, and meets the readers` search intent.

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