Check Your Understanding Answers
- Define bilateral and unilateral contracts.
A bilateral contract is one in which both parties promise to perform their respective parts of an agreement in exchange for performance by the other party.
In a unilateral contract, only one party promises to do something, provided the other party does something. The latter party is not obligated to perform any act, but the promising party must fulfill the promise if the other party chooses to perform.
- The same criteria need to be proven to enforce a bilateral or unilateral contract in court. The four criteria needed are what?
The contract existed
The contract was broken
A loss was suffered
The person challenged was responsible
- In its simplest terms, unilateral contracts involve what?
An action undertaken by one person or group alone
- Are options always unilateral or bilateral contracts?
Unilateral
-
