Question

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an _______.

1) executed, bilateral, express contract.
2) executory, bilateral, implied-in-law contract.
3) executory, unilateral, express contract.
4) executory, bilateral, express contract.

Answer 1

The contract between Mike and Mick is an executed, bilateral, express contract.

Step-by-step explanation:

The correct answer is 1) executed, bilateral, express contract.

An executed contract is one in which both parties have fulfilled their obligations. In this case, Mike has made the offer and Mick has accepted it, so the contract is already in effect. It is a bilateral contract because both parties, Mike and Mick, have made promises to each other. Finally, it is an express contract because the terms of the agreement, including the offer and acceptance, have been explicitly stated.