Contracts

In New Jersey, a bilateral contract in real estate is one in which:

AOnly the seller makes a promise
BBoth parties make promises to each other and both are obligated✓ Correct
COnly the buyer makes a promise
DA third party guarantees performance

Explanation

A bilateral contract involves a mutual exchange of promises. In a standard NJ purchase contract, the seller promises to sell and deliver title, and the buyer promises to pay the purchase price. Both parties are bound by enforceable obligations.

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