Multiple choice

A bilateral contract is one where

  1. the performance of both the parties is executory.

  2. the performance of both the parties is executed.

  3. the performance of one of the parties is executory.

  4. the performance of one party is executed.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the obligation pending from both parties is yet to be executed, it is a bilateral contract. (B) is an example of executed contract. (C) and (D) are unilateral contracts.

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