BUSINESS LAW
This query is : Resolved
Aashish Dangi
(Querist)
09 January 2021
are unilateral and bilateral contracts a part of an executory contract, and also do only contracts with outstanding obligations are included in them( unilateral and bilateral)
06 July 2024
Yes, unilateral and bilateral contracts are types of executory contracts. Let's clarify these concepts:
### Executory Contract:
An executory contract is a legal agreement where one or more parties have not yet fulfilled their obligations. In other words, it's a contract where some duties or promises remain to be performed by one or both parties.
### Unilateral Contract:
- **Definition:** A unilateral contract involves a promise made by one party (the promisor) in exchange for the performance of an act by another party (the promisee).
- **Nature:** Until the promisee performs the specified act, the promisor is obligated to fulfill their promise upon completion of the act.
### Bilateral Contract:
- **Definition:** A bilateral contract involves promises exchanged by both parties to the contract.
- **Nature:** Both parties are bound to fulfill their respective promises simultaneously or sequentially, depending on the terms of the contract.
### Inclusion in Executory Contracts:
- **Executory Nature:** Both unilateral and bilateral contracts are considered executory until all parties have fulfilled their obligations.
- **Outstanding Obligations:** Executory contracts encompass any contract where performance obligations remain outstanding. This includes both unilateral (where the promisee has yet to perform) and bilateral contracts (where obligations on both sides are pending).
### Conclusion:
In summary, unilateral and bilateral contracts are types of executory contracts because they involve obligations or promises that have not yet been fully performed by all parties involved. The executory nature of these contracts persists until all specified obligations are fulfilled, regardless of whether the contract is unilateral (one party's promise contingent on another's performance) or bilateral (mutual promises between two parties).
### Executory Contract:
An executory contract is a legal agreement where one or more parties have not yet fulfilled their obligations. In other words, it's a contract where some duties or promises remain to be performed by one or both parties.
### Unilateral Contract:
- **Definition:** A unilateral contract involves a promise made by one party (the promisor) in exchange for the performance of an act by another party (the promisee).
- **Nature:** Until the promisee performs the specified act, the promisor is obligated to fulfill their promise upon completion of the act.
### Bilateral Contract:
- **Definition:** A bilateral contract involves promises exchanged by both parties to the contract.
- **Nature:** Both parties are bound to fulfill their respective promises simultaneously or sequentially, depending on the terms of the contract.
### Inclusion in Executory Contracts:
- **Executory Nature:** Both unilateral and bilateral contracts are considered executory until all parties have fulfilled their obligations.
- **Outstanding Obligations:** Executory contracts encompass any contract where performance obligations remain outstanding. This includes both unilateral (where the promisee has yet to perform) and bilateral contracts (where obligations on both sides are pending).
### Conclusion:
In summary, unilateral and bilateral contracts are types of executory contracts because they involve obligations or promises that have not yet been fully performed by all parties involved. The executory nature of these contracts persists until all specified obligations are fulfilled, regardless of whether the contract is unilateral (one party's promise contingent on another's performance) or bilateral (mutual promises between two parties).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Gift to nri relatives residing in usa
- Form 144 TDS Return Validation Error – Mandatory Fields
- IMS (import of goods) ITC related
- Advances to related party
- How do you manage client document collection and follow-ups in your CA/CS practice?
- LLP audit and disclosure
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
