Essay on Case Study : Bilateral And Unilateral Contract

804 Words Jan 22nd, 2016 4 Pages
Case 9.2: Bilateral or Unilateral Contract

The case is an interesting one. It really deals with why you need to read the small print and/ or have agreements in writing. My. Bickman struck a deal with Washington Bank & Trust for his personal and business accounts to be transferred over to the bank, loans to be issued with a 7.5 % interest rate, and a loan terms of 10 years to pay off each loan. Mr. Bickman made the agreement with Mr. Adams Jr. the CP of the bank at the time. After Mr. Adams Jr. resigned from the bank, the bank notified Mr. Bickman of increases to the interest rates for all existing and new loans. To this Mr. Bickman disagreed and filed for a breach of contract. (Cheeseman, 2013)
The case is based in bilateral contract agreements. As per our text in chapter 9, on page 172 the definition of a bilateral contract is a contractual agreement of “a promise for a promise.” (Cheeseman, 2013) In other words, Mr. Bickman agreed to conduct business with the bank in exchange for a 10 yr. repayment plan and 7.5% interest rate on those loans, which both parties honored
The question of whether Mr. Bickman wins lies in which aspect of his contentment was filed. Under the argument of breach of contract, the courts found that the bank honored the contractual agreement of the 7.5% interest rate. Since in the original agreement did not hold a provision outlining the duration that the bank was required to honor the 7.5% interest agreement, the courts fell back on whether they…

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