Contracts

Which of the following is a 'bilateral contract'?

AA unilateral option contract for real estate
BA standard purchase and sale agreement where both buyer and seller exchange promises✓ Correct
CA listing agreement that only the broker signs
DA lease where only the landlord has obligations

Explanation

A bilateral contract involves mutual promises from both parties — each party is both a promisor and a promisee. A standard purchase and sale agreement is bilateral because both the buyer (promises to pay) and the seller (promises to convey) exchange binding promises. An option contract is unilateral because only one party (optionor) is bound.

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