Asked by Briana Quist on May 09, 2024
Verified
Tyler and Laura are arguing over the key difference between a bilateral and a unilateral contract. The key difference in these two types of contracts is ________.
A) the type of consideration.
B) a bilateral contract requires consideration and a unilateral does not.
C) a unilateral contract requires consideration and a bilateral does not.
D) the adequacy of consideration.
E) promissory estoppel must be present in a unilateral contract.
Bilateral Contract
An agreement involving two parties where each promises to perform an act in exchange for the other's act.
Unilateral Contract
A contract where one party makes a promise in exchange for an act by another party, which upon performance, binds the first party to its promise.
Promissory Estoppel
A law that stops someone from going back on a commitment they've made to another if the second party has trusted this promise to their own disadvantage.
- Differentiate between the features and obligations of bilateral and unilateral contracts.
Verified Answer
TB
Taziana BluntMay 09, 2024
Final Answer :
A
Explanation :
The key difference between a bilateral and a unilateral contract lies in the type of consideration. In a bilateral contract, both parties make promises to each other, which serve as the consideration. In a unilateral contract, only one party makes a promise, and the other party's consideration is the performance of an act or forbearance.
Learning Objectives
- Differentiate between the features and obligations of bilateral and unilateral contracts.