Want to know what a bilateral contract is? Then have a listen.
Ever wondered what a bilateral contract is? So have I. Stick around and I’ll tell you what they are.
Hi everyone. Simon here, from The Contract Company. Contracts, that’s what we do. All day, every day, and sometimes overnight. Lucky us.
So, what is a bilateral contract?
A bilateral contract is a contract between two parties, which is 99% of the time.
Well, in a complete surprise, you’ll be amazed to find out that a bilateral contract is a contract between two parties. Hints, bi. As in bicycle.
So, have you guessed what a trilateral contract would be? That’s right, a contract for the manufacture and supply of tricycles. Only joking. It’d be a contract between three parties.
So, ninety-nine percent of contracts out there are bilateral because they all involve two parties, and that means each party that the contract has promised an obligation they need to perform.
So you think about it. If you enter into a contract to receive services, your obligation is to pay for those services and the other person’s obligations are to provide the services.
So, as I said, ninety-nine point nine percent of contracts out there are just between two parties.
Anything more than that can be trilateral if it’s three, or multilateral if there’s more than three. Hope that helps.
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