A bilateral contract is best described as one in which:
Correct Answer
B) Both parties exchange mutual promises to perform, making each party both a promisor and a promisee.
A bilateral contract involves mutual promises between two parties, where each party is both a promisor and a promisee. A standard Mississippi real estate purchase agreement is a bilateral contract — the buyer promises to pay the agreed purchase price and the seller promises to convey marketable title. This distinguishes it from a unilateral contract, where only one party makes a promise in exchange for an act.
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