Multiple choice

An example of a bilateral contract

  1. Home buyer pays for house, seller gives buyer title to house

  2. Party A finds a lost dog and earns reward from party B

  3. A student agrees to pay a teacher to earn an A

  4. Part A pays reward for winning a drag race on city street
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A bilateral contract involves an exchange of mutual promises between two parties. A real estate transaction where the buyer promises to pay money and the seller promises to transfer the title is a classic bilateral contract.

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