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A bilateral contract in real estate is best described as:

Correct Answer

B) A contract in which both parties exchange mutual promises, each acting as both promisor and promisee

A bilateral contract involves mutual promises between two parties, where each party is both a promisor and a promisee. Most Idaho real estate purchase agreements are bilateral contracts, as the seller promises to convey the property and the buyer promises to pay the agreed purchase price.

Answer Options
A
A contract in which only one party makes a binding promise to perform
B
A contract in which both parties exchange mutual promises, each acting as both promisor and promisee
C
A contract that requires court approval before it becomes legally binding
D
A contract that involves three or more parties who all share equal obligations

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Related Topics & Key Terms

Related Topics:

unilateral contractsoption contractslisting agreementsmutual assentexecutory contracts

Key Terms:

bilateral contractmutual promisespromisorpromiseeunilateral contractpurchase agreement
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