A bilateral contract is a promise for a promise (i.e., if I promise to pay you $1,000 a month you promise to let me live in your extra bedroom), while a unilateral contract is a promise for an action (i.e., if you walk across the Brooklyn Bridge, I will give you $100)

Answer 1

Your definitions of bilateral and unilateral contracts are accurate.

A bilateral contract involves two parties exchanging mutual promises, where each party's commitment is contingent upon the other party's promise. In your example, one party promises to pay $1,000 a month, while the other party promises to provide accommodation in return. Both parties have obligations to fulfill, which makes it bilateral.

On the other hand, a unilateral contract involves one party making a promise that is contingent upon the occurrence of a specific action by another party. In your example, one party offers a reward of $100 for an action—walking across the Brooklyn Bridge—without any obligation from the other party to do so. The contract is only formed once the action is performed.

In summary:

• Bilateral Contract: Promise for a promise (both parties have obligations).
• Unilateral Contract: Promise for an action (one party promises something only if the other performs a specific task).

If you have any more questions or need further examples, feel free to ask!