We all use contracts every day, but what exactly is a contract? A contract is a law that people make for themselves. A contract governs the behavior of the people or businesses bound by the law that they agreed on.
Contracts can be as simple as an instant exchange of goods or services for money or as complex as a multi-year agreement. Contracts are the fabric that we use to interact with other people and businesses in the world.
In a Bilateral contract with two parties, both parties have to accept the terms of the contract.
For example, when you bring a bottle of soda to the cashier at the grocery store, you are offering to purchase that soda for the price listed on the shelf. The cashier has to accept your offer on behalf of the store, binding the parties.
A Unilateral contract on the other hand is a contract where one party has already agreed to be bound as soon as another person accepts the offer.
The most common examples of Unilateral contracts are contests or advertisements asking for the other party to perform a task. The easiest example of a Unilateral contract is a sign offering a reward for the return of a lost dog.
As soon as the person who lost their dog places the signs advertising the reward, they are agreeing to be bound to give the reward to whoever the person is who brings their dog home.
Similarly, if you advertise a reward for the completion of a contest, you are agreeing to be bound to give the reward if someone completes the contest.
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Baker Law Group is a Colorado business law firm. We can help you protect your confidential information and ensure that your contract is enforceable in court.