Bilateral Contract

Definition

  • 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.

Synonyms
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.
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