Bilateral Contract: Meaning and Template (Malta)
Updated on 13 August 2026
"Bilateral contract" is a legal category, not one specific document: it describes any contract where both sides promise to do something — one side's promise to pay, for example, in exchange for the other side's promise to deliver goods or perform a service. That's most contracts. It's the opposite of a unilateral contract, where only one party makes a promise (a reward offer, for instance, which the other side accepts only by actually doing the requested act).
The widely circulated US free version of this document takes the concept query and turns it into one specific, thin sale-of-goods contract with a hard-coded Buyer/Seller structure, no termination or breach remedy beyond the seller withholding delivery, and a malformed interest clause. If you actually need a two-party agreement for a specific purpose — a sale, a service, a barter, a lease — use the specific template for that: it will fit better and this page links to each one below. This page explains the concept and gives a general-purpose two-party agreement for when no more specific template fits.
Tap any highlighted blank in the document below and type straight into it.Free — no sign-up, no watermark
General Agreement
This Agreement is made on between ("Party A") and ("Party B").
1. Subject Matter
This Agreement concerns the following: .
2. Compensation
Party A shall pay Party B by , via .
3. Delivery or Performance
4. Late Payment Interest
Any amount not paid when due shall accrue interest at % per annum from the due date until paid.
5. Breach and Cure
If either party materially breaches this Agreement, the non-breaching party shall give written notice, and the breaching party shall have days to cure the breach.
6. Termination
If a material breach is not cured within the period stated above, the non-breaching party may terminate this Agreement and pursue any remedy available at law, including damages.
7. Force Majeure
Neither party is liable for delay or failure to perform (other than an obligation to pay money already due) caused by an event beyond that party's reasonable control, including acts of God, war, government order, or industrial action.
8. General
This Agreement is governed by the law of , constitutes the entire agreement between the parties, and may be amended only in writing signed by both parties. If any provision is held unenforceable, the remaining provisions remain in effect.
Party A
Date:
Party B
Date:
Malta's contract law uses "causa," a civil-law concept, not English consideration
Malta's Civil Code, in the tradition of the Code Napoléon, requires four things for a valid contract: capacity, consent, an object, and a lawful cause ("kawża" in Maltese; the Code's own English text uses the word "consideration," but the underlying concept is the civil-law causa — the reason or purpose of the contract — not the common-law doctrine of a bargained-for exchange). Under article 990, a contract founded on an unlawful causa — prohibited by law, or contrary to morality or public policy — has no effect, and the court can raise the point on its own initiative. This is a genuine civil-law feature of Malta's private law, even though Malta's commercial and company law has absorbed significant English common-law influence.
A concept query needs cross-links, not one thin document
Someone searching "bilateral contract" is very often trying to find out what the term means, or looking for a general two-party agreement template because they haven't found the specific one they need yet. This page answers the concept question directly and links to the specific family that actually fits: a sale of goods, a service engagement, a barter, or an amendment to an existing contract — each of those is a bilateral contract in the legal sense, drafted for its actual subject matter rather than left generic.
If you do need a general agreement, it needs real remedies
The free version's only consequence for non-payment is that the seller may withhold delivery — no cure period, no termination right, no damages, and an interest clause with a percent sign and no time period attached to it. The general agreement below fixes that: a stated cure period, a right to terminate for an uncured material breach, and a properly stated interest rate with a clear time basis.
Clause-by-clause guide (general agreement)
- Parties and subject matter
- Identifies both parties and what the agreement is actually about — described specifically, not left blank.
- Compensation
- The amount payable, when it's due, and the payment method.
- Delivery or performance
- When and how the non-monetary side of the exchange is delivered or performed.
- Late payment interest
- A stated interest rate with a clear annual basis, applied to any payment made after it's due.
- Breach and cure
- A stated cure period before either party can terminate for the other's breach.
- Termination
- The right to terminate for an uncured material breach, and what happens to amounts already paid or delivered.
- Force majeure
- Excuses delay caused by events genuinely beyond a party's control, but not the underlying payment obligation.
- General provisions
- Entire agreement, severability, amendment in writing, notices, and governing law.
Maltese notes
This is a general-purpose agreement, not a substitute for a specific contract type where one exists.
Use the specific template if one fits
A sale of goods, a service agreement, a lease, a barter and an amendment are all bilateral contracts, each with their own standard terms — use the specific family for that subject matter rather than this general agreement whenever one exists.
A lawful causa is required for validity
Under article 990 of the Civil Code, a contract founded on an unlawful causa — prohibited by law, or contrary to morality or public policy — has no effect, and the point can be raised by the court on its own initiative.
Academia.edu — Is 'Causa' in Maltese Civil Law redundant (James Camilleri)
How to use this template
- Check whether a more specific template fits first. If this is a sale, a service engagement, a lease, or a barter, use that specific template instead — it's drafted for the actual subject matter.
- Describe the subject matter clearly. State specifically what each party is agreeing to do — don't leave it as a placeholder.
- Set the payment and delivery terms. Enter the amount, due date, payment method, and delivery or performance terms.
- Set the cure period and interest rate. Enter how long a party has to cure a breach, and the late-payment interest rate.
- Sign and download. Both parties sign, then download a clean Word or PDF file — no sign-up, no watermark.
Frequently asked questions
What is a bilateral contract, in plain terms?
A contract where both sides promise to do something — most contracts are bilateral. It's contrasted with a unilateral contract, where only one side makes a binding promise and the other side accepts by actually performing an act rather than promising anything back.
Is Maltese "consideration" the same thing as English consideration?
Not exactly, despite the English text of the Civil Code using that word. Malta's concept is "causa" — the reason or purpose of the contract, a civil-law idea inherited from the Code Napoléon — rather than the common-law doctrine of a bargained-for exchange.
What's an example of a unilateral contract, for comparison?
Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 is the classic English example of the concept, often used to illustrate the bilateral/unilateral distinction even in jurisdictions like Malta that don't follow English contract doctrine directly.
Do I need this specific template, or a more specific one?
Almost always a more specific one. If you're selling goods, hiring a contractor, leasing property, or bartering, use that specific template — it's drafted for the actual subject matter and legal issues involved. Use this general agreement only when nothing more specific fits.
What happens if one party doesn't pay on time?
Under this template, late-payment interest accrues at the stated rate, and if the non-payment isn't cured within the stated cure period, the other party can terminate the agreement for material breach.
Can this template be used for a consumer contract?
It's written as a general commercial agreement. A consumer contract carries additional protections under Maltese and EU consumer law that this general template doesn't include — use a consumer-specific template or advice for that situation.
Related templates
Disclaimer
This template and guide are for general information only and do not constitute legal advice. This is a general-purpose agreement; a more specific template exists for most common transactions and should be used instead where it fits. Malta's civil-law contract concepts differ from English common law — confirm the position that applies to your situation before relying on this agreement.
