ContractsQuestion 54 of 120
Which of the following best describes a bilateral contract?
a.Only one party is obligated to perform
b.No consideration is exchanged
c.It must always be oral
d.Both parties exchange mutual promises to perform
Explanation
In a bilateral contract, both parties make enforceable promises, such as the buyer promising to pay and the seller promising to convey. A unilateral contract, by contrast, is a promise in exchange for an act.
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