What type of contract includes terms that both parties must fulfill and is generally advantageous to both?

An onerous contract is characterized by mutual obligations, where both parties agree to fulfill specific terms that provide benefits and advantages to each other. In essence, an onerous contract involves a give-and-take dynamic, where something of value is exchanged, and both parties stand to gain from the arrangement.

This type of contract is commonly found in commercial transactions and agreements where services or goods are exchanged for compensation. The mutuality of obligations ensures that both parties are bound to fulfill their terms, thereby creating a more balanced and equitable contractual relationship.

In contrast, an implied contract is inferred from the actions or conduct of the parties, rather than being explicitly stated, which may not guarantee mutual benefits in the same way as an onerous contract. A gratuitous contract is one where one party benefits without a reciprocal obligation, meaning it lacks the essential element of mutual fulfillment that defines an onerous contract. Lastly, a unilateral contract only binds one party to perform, leaving the other without any required obligations or responsibilities. This further differentiates it from an onerous contract, which necessitates the fulfillment of obligations by both parties involved.