Bilateral and Unilateral Contracts Essay

There are cardinal many types of snubs in the creation of business symmetric contracts and biased contracts are two of them. Each type with its special form and rules. In the world of business, a bilateral contract is cardinal where both parties are to fulfil their promises or obligations at some future time but not necessarily at the same time. And a colored contract is one where one of the parties performs his promises at the time of making the contract and the other party promises to perform in the future (Contracts, 2006).Which one is more common in the world of business? There are some reasons that oblige the bilateral contracts more common than the unilateral contracts in the world of business. Bilateral contracts have something called jointity of trade union movement which means each party of the contract has the same level of commitment. But in unilateral contracts there is only one party who undertakes the contract (offeror), and he will never pay the other (the of feree) party until he complete the commitment ,and he (the offeree) is not obligated to do it (Contracts, 2006).Under what circumstances would individual prefer one or the other? What really determines which type of contract to use is the type of business 1. Bilateral contracts A Bilateral contract is the consummate pickax in trading processes. For example, if John (the offeror) offers to pay $20,000 for Jack (the offeree) if Jack gives John his car, then this is a bilateral contract (Contracts, 2006). 2. Unilateral contracts It is the suitable choice in any business depends on offering from one side, and it is up to the other party to agree or disagree.For example, An insurance contract is a unilateral contract because only the insurer has made a promise of future performance and only the insurer can be charged with breach of contract (Unilateral Contract, 2006). Offering a reward to anyone helps arresting a criminal is also an example of unilateral contract (unilateral contract ). What are the advantages of each type for the offeror? 1. Bilateral contracts For the offeror, the advantage that he gets using this type of contracts is that he guarantees that the other party in the contract will do his duties in the contracts.And the reason for that is that this contract is an pocket contract amidst two parties, and the contracts includes mutual contractual obligation (Contracts, 2006). 2. Unilateral contracts The nature of this type of contracts gives the offeror an advantage by giving him many opportunities to make contracts. And thats because this type of offers is like an invitation for any party who is willing to make a contract. What are the advantages of each type for the offeree? 1.Bilateral contracts The offeree guarantees that the offeror will not break the rules of the contract, and he will get his rights. Both parties have the same position in the contract. The offeror and the offeree have the same level of obligation because of the mutual contrac tual obligation (Contracts, 2006). 2. Unilateral contracts This type of contracts includes certain conditions, and the offeree enters the contract only if he is agree with it and able to do his duties.This contract guarantees the offrees rights because if the offeree did his part of the contract, the offeror is enforced by the law to pay the offeree. The offeror doesnt have the authority of obligating the second party to perform (Unilateral Contract, 2008). Conclusion Two different types of contracts with two different natures. A combination of obligation and freedom in every type. In bilateral contracts, there is a complete level of obligation between the offeror and the offeree.In unilateral contracts, it is not the same level of obligation, there is a high level of obligation if the offeree did his duties (Unilateral Contract, 2008). References Bilateral Versus Unilateral Contracts. (2006). Retrieved August 3, 2008, from http//www. echeat. com/essay. php? t=30968 Unilateral Contr act. (2008). Retrieved August 3, 2008, from http//www. answers. com/topic/unilateral-contract-3 unilateral contract. (n. d. ). Retrieved August 4, 2008, from http//www. businessdictionary. com/definition/unilateral-contract. html