Contracts
In New Mexico, which of the following describes a 'bilateral contract' in real estate?
AA contract where only one party makes a promise
BA contract where both parties exchange promises — the buyer promises to pay and the seller promises to convey title✓ Correct
CA contract that can be cancelled by either party at will
DA contract between two real estate brokers
Explanation
A bilateral contract involves mutual promises from both parties. A standard real estate purchase agreement is bilateral — the buyer promises to pay and the seller promises to deliver marketable title and possession.
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