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A bilateral contract in South Dakota real estate is one where:

Correct Answer

B) Both parties exchange mutual promises

A bilateral contract is formed when both parties exchange mutual promises. A standard purchase agreement is bilateral — the buyer promises to pay and the seller promises to convey the property. This contrasts with a unilateral contract where only one party makes a promise.

Answer Options
A
Only one party makes a promise
B
Both parties exchange mutual promises
C
The contract is between two states
D
Two brokers represent the same client

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Related Topics & Key Terms

Related Topics:

unilateral-contractoption-contractmutual-obligationcontract-classification

Key Terms:

bilateralmutual promisesunilateralcontract classificationpurchase agreement
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