bilateral contract

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Related to Bilateral Contracts: Unilateral Contracts, Contractual agreement

Bilateral Contract

A contract in which each party has obligations to the other. For example, in a contract of sale, one party provides a good or service and the other party provides remuneration in the form of payment. Bilateral contracts are extremely common. See also: Unilateral contract.

bilateral contract

A contract in which each party promises to do something in return for the other's promise. If either party breaks its promise, the other may sue.This is the most common type of contract. A real estate purchase contract is a bilateral contract—the seller promises to sell, and the buyer promises to buy. Contrast with a unilateral contract, in which one party has an obligation but the other does not. Option contracts are unilateral contracts—the seller is obligated to sell if the buyer decides to buy, but the buyer is not obligated to buy at all.

References in periodicals archive ?
The model considered includes power purchase options via bilateral contracts, spot market purchases and low self-generation option.
According to the notation developed in [19], GD represents a square matrix of bilateral contracts.
In time, however, countries began to formalize their consular relations in bilateral contracts called treaties, conventions, or agreements--all of which carry the binding status of a treaty for purposes of international law.
In market structures where preferences and technologies are convex, the restriction to bilateral contracts is generally unimportant, but when nonconvexities are severe, it may be impossible to reliably achieve efficiency under the constraint of bilateral contracting (Telser 1987).
The court added that insurance contracts are unlike ordinary bilateral contracts because the motivation for entering into an insurance contract is different.
The German Government has gone on the record as stating that its line sharing is based on bilateral contracts between companies rather than on openly published prices.
The appeal of such an exchange is to offer the various players alternatives to traditional bilateral contracts.
He notes that it was designed by well-intentioned academics, who, although expert in electricity regulation and economic theory, had no experience in the real world of bilateral contracts and markets.
DEMEC owns a 45-megawatt (MW) peaking unit, but historically obtained most of its power requirements through bilateral contracts and market purchases.
The Department of Energy (DOE) is targeting next year the release of a revised set of guidelines on Competitive Selection Process (CSP), a policy which requires distribution utilities (DUs) to hold competitive bidding for their supply requirements as against securing power deals via bilateral contracts.
Under the model envisaged by the government, an intermediate period to full competition will be ushered in by allowing private energy producers -- mainly from renewable energy sources -- to sell their electricity through monthly, bilateral contracts.
On the average, so-called bilateral contracts between generating and distribution companies accounted for 89 percent of electricity consumption, while the WESM only got 11 percent.
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