A contract in which both parties exchange promises is a:
A) voidable contract.
B) bilateral contract.
C) unilateral contract.
D) quasi contract.

Question

Quizplus · Accepted Answer

A bilateral contract is a type of contract in which both parties exchange promises. This is different from a unilateral contract, in which one party makes a promise in exchange for a specific action or performance from the other party. A voidable contract may be valid initially but can be terminated or cancelled later on due to certain factors such as fraud, mistake, or undue influence. A quasi contract is not a contract at all, but rather an equitable remedy that may be imposed to prevent unjust enrichment.

A Contract in Which Both Parties Exchange Promises Is A