Bilateral contract Sample Clauses

A bilateral contract is a legal agreement in which both parties make mutual promises to perform certain obligations. In practice, this means that each party is both a promisor and a promisee; for example, one party may agree to deliver goods while the other agrees to pay for them. The core function of a bilateral contract is to create binding commitments on both sides, ensuring that each party has enforceable rights and duties, which helps facilitate fair and predictable exchanges.