Multiple choice

A bilateral contract

  1. Can only have 2 parties and 2 obligations

  2. Can only have 2 parties, with at least 1 obligation

  3. 2 promises, the first leads to a reciprocal promise

  4. Promise is made by only 1 party
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A bilateral contract is formed by an exchange of mutual promises, where each party's promise is the consideration for the other's. This results in reciprocal obligations that both parties are legally bound to perform.

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