What is a bilateral contract?
A bilateral contract is a promise exchanged for a promise.
Why it matters
Most everyday contracts are bilateral — each side promises to do something.
Common confusion
Bilateral = promise for promise; unilateral = promise for an act.
Frequently Asked Questions
Give an example.
A sale: I promise to pay, you promise to deliver the goods.
Is a handshake deal bilateral?
It can be, if both sides promised something.
Does it need writing?
Only if the statute of frauds requires it for that type.