In a bilateral contract,the consideration for each promise is a return promise.

Bilateral Contract

An agreement involving two parties where each promises to perform an act in exchange for the other's act.

Return Promise

An agreement in a contract where one party promises to perform an action in response to the performance of a second party.

Distinguish between bilateral and unilateral contracts and their respective consideration requirements.

Verified Answer

Final Answer :

True

Explanation :

In a bilateral contract (a promise for a promise),the "consideration" for each promise is a return promise.

Learning Objectives

Distinguish between bilateral and unilateral contracts and their respective consideration requirements.