LAWS 3003 Study Guide - Final Guide: Contract, Posting Rule, Standard Form Contract
19 Jan 2017
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Contract: a legal binding agreement, a promise or set of promises, which the law will enforce. All contracts are agreements but not all agreements are contracts. Contracts can be classified as either bilateral contract or unilateral contract. Bilateral contract: is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods. Unilateral contract: is one where one party promises to do something (usually pay a sum of money) in return for an act of the other party, as opposed to a promise. A classic example is a reward case where a promises a reward to anyone who will find his lost dog. The essence of a unilateral contract is that only one party, a, is bound to do anything.
