StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Difference Between the Bilateral and Unilateral Contract - Essay Example

Cite this document
Summary
The writer of the following essay seeks to briefly compare the two most common types of business contracts: bilateral and unilateral. Therefore, the writer would highlight the characteristics of each type as well as examine certain cases best suited for each type…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Difference Between the Bilateral and Unilateral Contract
Read Text Preview

Extract of sample "Difference Between the Bilateral and Unilateral Contract"

Question Which type of contract, bilateral or unilateral is more common in business? A contract is a set of promise between parties whose breach has a remedy in law provision in regards to in its performance of which the law in some way recognizes a duty. Thus, this is an agreement enforceable by law. A bilateral contract is one that involve both parties in making a promise while an unilateral contract one a promise is made in exchange for an act. A bilateral contract is relatively common in business since both parties make a promise.

Question # 2: Why is the above contract considered more common? A bilateral contract necessitates a promise from both parties. Nearly all businesses are profit oriented. Businesses either being sole proprietorship or partnership require binding deals between two partners since equal contribution between each other is expected for the business growth. Input must be equal depending on what each is bringing to the business, and a unilateral contract becomes acceptable when the other party completely performs the action (Cheeseman, 2009).

Question # 3: Under what circumstances would one prefer one or the other? A unilateral contract would be considered in a scenario in which one expects some service done to them and in return, of remuneration for the service rendered thus, a promise is made for payment or honor of service rendered upon completion. For instance, an individual in an educational situation would consider a unilateral contract. Quintessentially, a private tuition where payment is done upon completion of the desired session or as agreed.

Production companies often sought unilateral agreements where they are paid upon completion of a task (Cheeseman, 2009). A bilateral contract would be considered between two individuals with the desire to start a partnership business whiles each makes contributions for security and more so if the two parties do not have a close, personal relationship. Large groups can also settle for a bilateral contract in case they plan to work together thus, a percentage of contribution is expected from each party and since law binds the contract, it helps to prevent breach of the contract by either party.

Question # 4: What are the advantages of each type for the:a) Offeree? A unilateral contract can be changed by one party as it only stands when the other party performs the given task. The offeree only gets to be bound once he decides to commit to the contract. A bilateral contract is beneficial to the offeree since both parties make a law binding promise.b) Offerer? A unilateral contract for the offerer can be beneficial once achieved as they bargain for completed performance rather than a promise to perform.

An example being the case of an insurance company, which expects the insurer to make a promise for future performances. A bilateral contract for the offerer is beneficial since he is offering to pay the other party’s promise to perform the act (Cheeseman, 2009).ReferenceCheeseman, H. R. (2009). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues. New Jersey: Pearson Prentice Hall.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“BAM 317 - Business Law-unit 3 essay question # 1”, n.d.)
Retrieved from https://studentshare.org/law/1587152-bam-317-business-law-unit-3-essay-question-1
(BAM 317 - Business Law-Unit 3 Essay Question # 1)
https://studentshare.org/law/1587152-bam-317-business-law-unit-3-essay-question-1.
“BAM 317 - Business Law-Unit 3 Essay Question # 1”, n.d. https://studentshare.org/law/1587152-bam-317-business-law-unit-3-essay-question-1.
  • Cited: 0 times

CHECK THESE SAMPLES OF Difference Between the Bilateral and Unilateral Contract

Business Management Affairs

Here, the two categories are bilateral and unilateral contracts.... While the main difference between the two lies in the courts administering the remedy, the remedies continue to be administered by the same courts.... the bilateral contracts, on the other hand, provide legal obligations to both parties.... The English contract law makes a distinguishing characterization between the duties arising.... These courts shall be used in the administration of remedies for the contracts between the judges and Simons' company....
6 Pages (1500 words) Coursework

Interest Related to Business Law in APA Style

This paper discusses a contract along with the basic elements of a contract.... contract is defined and is explained.... The essentials of a contract is also mentioned and studied in detail.... Classification of a contract is also examined.... Distinctions between unilateral and bilateral contracts are also put forth in this paper. … A contract is a promise between two or more persons and involves interchange of some good or service resulting in a commitment for the breach of which a suit for damages can be filed in a court of law....
6 Pages (1500 words) Essay

Discussion Questions Week 3

A bilateral contract is distinguishable from a unilateral contract, a promise made by one party in exchange for the performance of some act by the other party.... The party to a unilateral contract whose performance is sought is not obligated to act, but if he or she does, the party that made the promise is bound to comply with the terms of the agreement.... An example of a unilateral contract could be a lease.... For instance, consider first the bilateral contract....
4 Pages (1000 words) Essay

General Concept and Aspects of Contract and Negligence for Business

The goal of the following assignment is to reveal the general concept of the binding a contract in business affairs.... hellip; In order to form a legally binding contract, there has to be a legal offer.... Moreover, the writer of the paper will discuss its different aspects, describing particular examples which is very convenient as it makes the topic highly understandable....
7 Pages (1750 words) Essay

China and Globalization

Additionally, in the globalization age, the two nation's relations have enabled strong interdependent economic relationships that exist as the debtor-creditor and importer-exporter between China and the United States.... Currently, the US government and the People's Republic of China are not enemies or allies in that the U....
4 Pages (1000 words) Assignment

Short Legal Questions

This clause gives the Congress power to initiate regulations on the commerce between America and other nations, between states and between America and Indian tribes.... The clause is used for instant in making regulations on the business that the business community in America is in, between themselves and with other nations....
5 Pages (1250 words) Essay

Legal Elements of a Business Contract

hellip; The first legal element of a contract is an offer, which denotes an individual's willingness to enter into a certain contract with a clear awareness of the specifications of the terms.... The person making the offer is usually aware that the contract is to be a legal binding document if the other party accepts it.... Consideration is the third element in contracts and is denoted as a valuable item or cash, which is presented so as to make the contract more binding....
4 Pages (1000 words) Coursework

Aspects of Contract and Negligence for Business

A Bilateral contract differs from the unilateral contract wherein the former is formed upon completed performance Related to bilateral contract is Quasi-contract that is not actually a contract, but is applied by courts to unfinished business of bilateral contracts.... unilateral contract is not commonly used.... The purpose of the following assignment "Aspects of contract and Negligence for Business" is to briefly discuss the legal aspects of business contracts....
8 Pages (2000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us