Contracts

A bilateral contract in real estate is one where:

AOnly one party is bound by promises
BBoth parties exchange promises and are mutually obligated✓ Correct
CThe government is a party to the transaction
DTwo brokers are involved

Explanation

A bilateral contract involves mutual promises from both parties. A purchase and sale agreement is bilateral — the buyer promises to pay and the seller promises to convey title. Both are bound by their promises.

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