Contracts

In Maine, a 'bilateral contract' in real estate means:

AOnly one party is bound by the agreement
BBoth parties make mutual promises and are bound by the contract✓ Correct
CTwo separate contracts exist for the same property
DThe contract requires approval by two attorneys

Explanation

A bilateral contract involves promises exchanged by both parties — each party is both a promisor and a promisee. A standard purchase and sale agreement is bilateral: the seller promises to convey; the buyer promises to pay.

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