Contracts

In Michigan, a 'bilateral contract' means:

AA contract between two governmental entities
BBoth parties make promises to each other and both are bound✓ Correct
CA contract that can be cancelled by either party at will
DA contract involving two separate properties

Explanation

A bilateral contract involves mutual promises: both parties are bound to perform. A purchase agreement is bilateral—the seller promises to convey and the buyer promises to pay. An option contract is unilateral—only the optionor is bound to sell if the optionee exercises the option.

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