mutuality of contract

mutuality of contract definition - business

mutuality of contract

An agreement in which each party has an obligation to do or agree to permit to be done something in consideration of the act or promise of the other. In other words, neither party is bound unless both are bound.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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