Contracts

Under Florida contract law, a 'bilateral contract' is one in which:

ABoth parties must be licensed real estate professionals
BBoth parties make promises (consideration flows both ways)✓ Correct
CTwo separate contracts are signed for the same transaction
DThe contract is binding on both the buyer and the seller's heirs

Explanation

A bilateral contract is one where both parties exchange promises — each promises to do something in consideration for the other's promise. Most real estate purchase contracts are bilateral: the seller promises to convey title, and the buyer promises to pay the purchase price. A unilateral contract involves only one party making a promise (e.g., an option contract where only the seller is bound initially).

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