1 Answer
A bilateral obligation is when both parties in an agreement or contract have responsibilities toward each other. In other words, it's a situation where each person or group involved has duties to fulfill, and both sides are expected to perform certain actions or provide something in return.
Example:
Imagine a buying and selling contract between two people:
In this case, both parties have a bilateral obligation because:
If either side fails to meet their obligation (e.g., if the seller doesn't deliver the laptop or the buyer doesn’t pay), it can lead to legal consequences or the contract being broken.
Example:
Imagine a buying and selling contract between two people:
- Seller's Obligation: The seller agrees to deliver a product (e.g., a laptop) to the buyer.
- Buyer's Obligation: The buyer agrees to pay a certain amount of money (e.g., $500) for that laptop.
In this case, both parties have a bilateral obligation because:
- The seller is obligated to provide the laptop.
- The buyer is obligated to pay the agreed amount.
If either side fails to meet their obligation (e.g., if the seller doesn't deliver the laptop or the buyer doesn’t pay), it can lead to legal consequences or the contract being broken.