Question

Suppose​ Mary, the owner of the Chic Dress​ Shop, says to​ Peter, a​ painter, "If you promise to paint my store by July​ 1, I will pay you​ $3,000." Peter​ says, "I promise to do​ so." A​ _____ was created at the moment Peter promised to paint the dress shop.

Answer 1

Answer: bilateral contract

Explanation: In simple words, bilateral contract refers to an agreement under which two individual parties agree to satisfy the obligations of performing a specific activity.

In the given case, Peter promises to paint the store of Mary and Mary promises to pay him $3000.

Hence from the above we can conclude that the given case illustrates bilateral contract.