Contracts
A purchase contract in Louisiana is considered 'bilateral' because:
AIt is signed by two attorneys
BBoth buyer and seller make binding promises to each other✓ Correct
CIt requires two witnesses to be valid
DThe consideration flows in two installments
Explanation
A bilateral contract involves mutual promises — both parties are bound to perform. In a purchase contract, the buyer promises to pay and the seller promises to transfer title.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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