Legal Definition of Bilateral Agreement

A bilateral agreement is a contract in which both parties have promised to perform.

The legal term "bilateral agreement," also known as a "bilateral contract," is best defined by breaking down the terms into individual words, and then comparing or contrasting the resulting definition to a related type of agreement.

Agreement

Legally, agreement is another name for a contract. An agreement may also be the document representing the contract.

Contract

A contract is a legally binding agreement.

A contract is an agreement with specific terms between two or more parties---a promise to do something in return for a valuable benefit known as "consideration."

Bilateral

As it applies to a legal agreement, bilateral means affecting or undertaken by two sides equally, and binding on both parties.

Bilateral Agreement

A bilateral agreement is one in which the parties exchange promises for each to do something in the future. It is a contract in which both parties have promised to perform.

Unilateral

Unilateral means done or undertaken by one party. It may also mean of, relating to, or affecting one side of a subject.

Unilateral Agreement

A unilateral agreement may be defined as a contract in which there is a promise to pay if the other party chooses to do something. It can also be an agreement containing a promise to perform made by only one party because the other party has already performed.

References

• American Heritage® Dictionary of the English Language
• Merriam-Webster's Dictionary of Law
• The People's Law Dictionary