Contracts
What is a 'bilateral contract' as it applies to a real estate purchase agreement?
AA contract where only the seller is bound to perform
BA contract where both parties exchange promises and are mutually obligated✓ Correct
CA contract involving two separate properties
DA contract requiring two agents to participate
Explanation
A bilateral contract is one in which both parties make promises — the buyer promises to pay and the seller promises to convey. A real estate purchase agreement is a bilateral contract because both parties are bound to perform their respective obligations.
Related California Contracts Questions
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- A counter offer:
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