Definition - What does Bilateral Contract mean?
A bilateral contract is one in which each party promises to fulfill certain obligations. It is the most common type of contract.
Insuranceopedia explains Bilateral Contract
A bilateral contract is essentially an agreement between two or more parties, binding all of them to reciprocal obligations. Each of the parties in a bilateral contract are simultaneously obligors (owing another party the performance of some act) and obligees (those owed the performance of some act from another).