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Brickham Case

Decent Essays

Assignment Three. Case 9.2 Bilateral or Unilateral Contract: In the case of Bickham v Washington Bank & Trust Company, a distinction must be made as to what type of contract has been made if any. In a unilateral contract is also called a “Promise for an Act” (Cheeseman, 2013). The meaning of this is that an act must be completed in order for there to be a contract. An example of this is if someone was to promise to pay a set amount if a second party painted a wall. If the wall is not painted then the contract does not happen. A bilateral contract is a contract in which two parties agree to a “promise for a promise” (Cheeseman, 2013). In this case there is a bilateral contract created. The agent of the bank Mr. Adams created an agreement in which Mr. Bickham would move all finance business to …show more content…

After two years the bank changes the deal and raises the interest rate on all current and future loans to Mr. Bickham. This contract was initially performance based and required Mr. Bickham to move all his financial transactions thru the bank. Once did this he performed his obligation to the bank, the bank then in turn loaned Mr. Bickham the money at the agreed upon rates. Due to the fact that this contract is a bilateral type, when the bank changes the deal they are in breach of the contract. The current loans, regardless of current economic issues the bank is having, should not and cannot legally be modified without both parties agreeing to the modification. Future loans as they have not been formally signed and agreed upon would change to the new interest rate. To answer the second question from this case study, yes Mr.

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