- A legal agreement or contract where both parties involved agree to give each other something. For example, in a property purchase agreement the buyer pays money to the seller and the seller then transfers the property to the buyer. This is a bilateral contract.
two-way, reciprocal, respective, give-and-take, mutual
Related Terms and Acronyms
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Exchange — Definition,
- A trade of property for other property or services. Like-kind property exchanges are a popular tax-deferral strategy.
- Oral Agreement — Definition,
- A spoken, unwritten legal agreement, worth the paper it's printed on.
- Purchase Agreement — Definition,
- A written promise to pay a specific amount for a property at a specified time. The purchase agreement is a written statement of the offer, which both the borrower and the seller will sign if the offer is accepted.
- Sale-leaseback — Definition,
- A transaction in which the seller transfers the title to the buyer, then rents the property from the new owner. Generally not done in Canada, more an American practice.