Contracts

A bilateral contract is one in which:

AOnly one party makes a promise
BBoth parties exchange mutual promises to perform✓ Correct
CThe contract is voidable by either party
DOne party pays and the other delivers services

Explanation

A bilateral contract contains mutual promises: both parties agree to do (or refrain from doing) something. A typical real estate purchase agreement is bilateral — the seller promises to convey title and the buyer promises to pay.

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