A bilateral contract in real estate is one where:
Why Both parties exchange promises Is Correct
Answer B: Both parties exchange promises
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
People Also Study
Related Alabama Questions
- An agreement where one party promises to perform only if the other party performs first is a(n):Contracts
- In Alabama, a listing agreement is a contract between:Contracts
- In Alabama, a buyer who defaults on a purchase contract may face which remedy at the seller's option?Contracts
- An Alabama purchase agreement includes a financing contingency. If the buyer cannot obtain financing, the buyer may:Contracts
Key Terms to Know
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →