In your own words, explain the processes responsible for the formation of a lateral fault.

The lateral faults are created because of the immense force and pressure from the Mantle layer of the Earth towards the Crust layer, which breaks under that force and pressure. The Mantle layer is a layer of magma, melted metals, that has very high temperature and thus pressure. On certain points on the Earth, the Crust layer is thinner and cracks. That is accompanied by volcanic activity, earthquakes or both. Once the Crust is broken by the pressure and force from beneath, the pressure and force from the Mantle layer moves bit by bit in certain direction.