Legal Definitions - mutual promises

Definition: Mutual promises are promises given simultaneously by two parties, each promise serving as consideration for the other. It is a type of bilateral contract where both parties make a commitment to do something.

Example: A hires B to paint his house for $1000, and B promises to complete the job within two weeks. A's promise to pay $1000 is the consideration for B's promise to complete the job within two weeks. Both promises are mutual and serve as consideration for each other.

This example illustrates mutual promises because both parties make a commitment to do something. A promises to pay $1000, and B promises to complete the job within two weeks. Both promises are essential to the contract, and if one party fails to fulfill their promise, the other party can sue for breach of contract.