Case 9. 2 : Bickham V Washington Bank & Trust Company Case

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Case 9.2: Bilateral or Unilateral Contract on page 179 In the Bickham v Washington Bank & Trust Company case it is fact that a contract did exists. The legal question however, would be; is there a breach of this contract. A breach of contract is when one of the parties involved in the contract fail to honor their end of the arrangement or interfere in some way with the other party’s attempt at completing their part. The contract could be either bilateral or unilateral. In order to determine this, the offeree’s acceptance terms must be analyzed. “A bilateral contract is a reciprocal arrangement between two parties where each promises to perform an act in exchange for the other party's act. Each party to a bilateral contract is an obligor (a person who is bound to another) to its own promise, and an obligee (a person to whom another is obligated or bound) on the other party's promise. A bilateral contract specifies a duty to act in exchange for another party's duty to act.” (Staff, 2017). A unilateral contract is when only one party makes a promise to pay the other party. The other party’s acceptance is by performance. Distinguishing between the two is important because only one party is legally bound in a unilateral contract. G. S. Adams, vice president of the Washington Bank & Trust Co., entered into a bilateral contract with Mr. Bickham. When they met, Adams is speaking on behalf of the bank when he promised to loan Mr. Bickham money on specific terms. The terms were

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