SP18-BBA-008

Quiz no 2

Submitted to:

Madman Nabila Khan

Registration no:

Sp18-BBA-008

Faraz Zaigham

Subject:

Corporate Law

Date:

24/4/2021
SP18-BBA-008

What is difference between unilateral contract and bilateral contract? Explain

with illustrations.

Unilateral Contract:
Since unilateral contracts are one-sided contracts, one of the parties is known as the offer or and
the other offered. As only the offered one makes a promise, only that party is legally bound to perform
the contract.

Time required:
As unilateral contracts are initiated by a single party, there are no strict deadlines. The offer or
can extend the period as he is the only one obligated to perform it.

You might see examples of unilateral contracts every day, too; one of the most common instances is
a reward contract. Pretend you've lost your dog. You place an advertisement in the newspaper or
online offering a $100 reward to the person who returns your missing Dog. By offering the reward,
you're offering a unilateral contract. You promise to pay should anyone fulfill the obligation of
returning your dog. You're the only person who has taken any action in this contract, as no one is
specifically responsible or obligated to finding your dog passed on this interaction.

Bilateral Contracts:
A Bilateral Contract is a dual-sided contract, wherein both the parties to the contract have not yet
fulfilled their part, at the time of entering into the contract.

Time required:
Bilateral contracts have stricter guidelines as both the parties agree to a mutual time frame at the
beginning of the contract.

For example:

A car buyer may agree to pay the seller a certain amount of money in exchange for the title to the
car. The seller agrees to deliver the car title in exchange for the specified sale amount.