ContractsIntermediateAlabama Exam

A real estate purchase contract that requires the buyer to purchase a home inspection within 10 days is a(n):

AExecuted contract
BBilateral executory contractCorrect
CUnilateral contract, in general
DVoid agreement

Why Bilateral executory contract Is Correct

Answer B: Bilateral executory contract

A fully signed purchase contract where performance is still pending (such as completing inspections) is a bilateral executory contract — both parties have made promises and have obligations remaining.

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.

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