Difference Between the Bilateral and Unilateral Contract Essay

Difference Between the Bilateral and Unilateral Contract - Essay Example 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). 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, 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 a breach of the contract by either party. 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. 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.