Question

What is the difference between a bilateral and unilateral offer?

Answer 1

The difference between a bilateral and unilateral offer lies in the nature of the agreement and the way each party accepts or performs the offer.

1. Bilateral Offer

   - In a bilateral offer, both parties make promises to each other.
   - It involves a mutual exchange of promises, meaning each party agrees to do something for the other.
   - The contract is formed when both parties agree to the terms.
   - Example: If you promise to sell your car to someone for $5,000, and they promise to pay you that amount in exchange, that’s a bilateral contract. Both of you are making promises to each other.

2. Unilateral Offer

   - In a unilateral offer, only one party makes a promise.
   - The contract is formed when the other party accepts the offer by performing the act requested (rather than making a promise in return).
   - The offeror is the one making the promise, and the offeree's action of completing the task or condition is what creates the contract.
   - Example: If someone says, “I will pay $500 to anyone who finds and returns my lost dog,” it’s a unilateral offer. The person making the offer promises to pay if someone performs the action of returning the dog.

Key Differences:

1. Bilateral = Mutual promises between both parties.
   

1. Unilateral = One promise is made, and acceptance happens by performing an action.