Definitions for "BILATERAL CONTRACT"
One containing mutual promises with each party being both a promissor and a promisee. E.g. Y promises to wash X’s car on Tuesday. X promises to pay Y $15 if the car is washed on Tuesday. The two promisse’s are a bilateral contract.
One in which both parties have enforceable commitments. For instance, in a contract of sale, one party promises to deliver the item sold and the other party promises to pay the stated price. Insurance contracts are not bilateral. They are unilateral because only one party, the insurer, makes an enforceable promise to pay; the insured cannot be required to pay the premium. (See also: unilateral contract.)
a contract involving mutual promises (each part is both promisor and promisee)
an agreement for the purchase and the sale of energy products and services