Contracts
A bilateral contract in real estate is one in which:
AOnly the seller makes a promise
BOnly the buyer makes a promise
CBoth parties exchange binding promises✓ Correct
DA third party (escrow agent) holds funds for both parties
Explanation
A bilateral contract involves mutual promises between two parties — each party promises to do something in exchange for the other's promise. A typical real estate purchase contract is bilateral: the buyer promises to pay and the seller promises to convey title.
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