Question

In a ________ contract, a promise is exchanged for an act or a forbearance for acting.

1) bilateral
2) executory
3) executed
4) d. unilateral

Answer 1

In a bilateral contract, both parties make promises to each other and are obligated to fulfill those promises.

Step-by-step explanation:

In a bilateral contract, a promise is exchanged for an act or a forbearance for acting. This means that both parties involved in the contract make promises to each other and are obligated to fulfill those promises. For example, if you purchase a product online, the seller promises to deliver the product, and in return, you promise to pay for it.