Contracts
What is the difference between a 'bilateral' and a 'unilateral' contract in Pennsylvania real estate?
ABilateral contracts require two signatures; unilateral contracts require only one
BA bilateral contract involves mutual promises from both parties; a unilateral contract involves a promise from one party in exchange for performance from the other✓ Correct
CBilateral contracts are used for commercial property; unilateral for residential
DThere is no legal distinction between bilateral and unilateral contracts in Pennsylvania
Explanation
A bilateral contract involves mutual, binding promises — both parties are obligated. A fully executed Agreement of Sale is bilateral: the buyer promises to pay and the seller promises to convey. A unilateral contract involves one party's promise in exchange for the other's act — the promisor is bound only if the other party performs. An option is a unilateral contract: the seller promises to sell at a fixed price if the optionee chooses to exercise the option.
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