Contracts

In South Dakota, which of the following statements about a 'bilateral contract' in real estate is correct?

AOnly one party makes a promise in a bilateral contract
BA bilateral contract involves promises from both parties; both are obligated to perform✓ Correct
CA bilateral contract is not enforceable unless witnessed by a notary
DA listing agreement is a unilateral, not bilateral, contract

Explanation

A bilateral contract involves mutual promises — both parties make binding commitments to perform. A purchase contract (both buyer and seller promise to perform) is bilateral. A unilateral contract involves only one party's promise, which becomes binding when the other party performs (open listings can be unilateral).

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