ContractsIntermediateAlaska Exam

A bilateral contract in Alaska real estate is one where:

AOnly one party makes a promise
BBoth parties exchange promises and are mutually obligatedCorrect
CThe contract involves two separate properties, in most cases
DBoth a buyer and seller agent must sign

Why Both parties exchange promises and are mutually obligated Is Correct

Answer B: Both parties exchange promises and are mutually obligated

A bilateral contract involves a mutual exchange of promises — both parties are obligated to perform. A purchase agreement is bilateral: the buyer promises to pay and the seller promises to convey title.

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

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