Illustrate bilateral contract

Question

Illustrate bilateral contract?

Answer 1

A bilateral contract occurs when a promise is exchanged for a promise. In that case, acceptance may occur through written or spoken words or by conduct (e.g., shaking hands or nodding agreeably). Silence will be viewed as a manner of acceptance only in very limited circumstances. When there is no face-to-face contact, it may be necessary to determine where and when a contract was formed or, if the lines of communication have broken down, whether a contract was even formed. The general rule is that acceptance by instantaneous communication (where there is little or no delay in the interaction between the parties) is effective when and where it is received by the offeror. Otherwise, according to the postal rule, acceptance by non-instantaneous communication is effective where and when the offeree sends it.