Question

Bilateral and unilateral contracts are best described by which of the following statements?

A) Bilateral involves one party
B) Unilateral requires mutual agreement
C) Bilateral requires a performance
D) Unilateral involves promises from both parties

Answer 1

Bilateral contracts require mutual agreement between both parties, while unilateral contracts involve promises from both parties.

Step-by-step explanation:

Bilateral and unilateral contracts are best described by the following statements:

1. D) Unilateral involves promises from both parties. A unilateral contract involves one party making a promise or offer that the other party can accept by performing a specific action. For example, if Party A promises to pay Party B $100 if Party B mows their lawn, Party B can accept the offer by mowing the lawn.
2. A bilateral contract requires a mutual agreement between both parties involved. Both parties make promises to each other, and both parties are obligated to fulfill their promises. For example, if Party A promises to pay Party B $100, and Party B promises to provide a service in return, a bilateral contract is formed.