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Glite Dictionary
bilateral contract

bilateral contract

6.3
An agreement between two people or groups where each promises something to the other
  • noun
  • /ˌbaɪˈlætərəl ˈkɒntrækt/
  • Specialized
translation icon : contrato bilateral
  • Despite the central importance of the day-ahead market, an equally vital part of the Pool is the forward market where consumers and generators meet voluntarily to trade bilateral contracts.

Examples

  • Development agreements take the form of bilateral contracts as the municipality and the developer exchange promises.

    Academic text (2001)

  • A bilateral contract requires both parties to fulfill their promises to each other.

  • Because CDS trades are bilateral contracts that remain open until their expiration date, past transaction activity is reflected in gross notional amounts for an extended period even though the economic exposure may already have been unwound.

    Academic text (2016)

  • In short, contract zoning is illegal whenever it arises from a promise by a municipality to zone property in a certain manner, whether in a bilateral contract or a unilateral contract initiated by the municipality.

    Academic text (2001)

  • The artist signed a bilateral contract with the gallery, committing to exhibit her work for a year.

  • Before starting the project, they drafted a bilateral contract to ensure mutual obligations were clear.

Synonyms

contract
vsbilateral contract
∞ 2.8

A written agreement between people or companies that the law can enforce

is where both parties make mutual promises and are mutually bound
agreement
vsbilateral contract
  • Formal
∞ 1.4

A promise made between two or more people, often written

is binding and involves reciprocal promises with both sides as promisor and promisee

How One-Sided

unilateral contract
  • Formal
7.7
bilateral contract
  • Specialized
6.3
multilateral
  • Formal
27 6.3

Surface Forms

bilateral contract singular
bilateral contracts plural

Morphology

bilateral + contract

The meaning is directly and transparently derivable from 'bilateral' (two-sided / involving two parties) + 'contract' (an agreement); together they denote an agreement between two parties with mutual obligations. This adjective+noun composition is common cross-linguistically (e.g. Spanish/ French cognates) and follows standard, predictable English compounding patterns, so a learner who knows both words will understand the MWE.

Etymology

Bilateral contract comes from the parts bi- meaning 'two' and lateral meaning 'sides', so imagine two people on opposite sides promising to each other. That's why it means a contract where 'both sides' make promises that they must keep.