Mutuality of obligation applies only to bilateral contracts.

Question

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Mutuality of obligation refers to the idea that both parties in a contract have an obligation to perform their part of the agreement. This applies to bilateral contracts where both parties have made enforceable promises to each other. In contrast, unilateral contracts involve a promise by one party in exchange for the completion of a specific action by the other party, and mutuality of obligation does not apply.

Mutuality of Obligation Applies Only to Bilateral Contracts