New Jersey Real Estate Practice Exam Free Practice Question
A property owner and a tenant enter into a written agreement whereby the owner will let the tenant live in a home in exchange for monthly rent. Which of the following types of contracts has been created?
Correct Answer: D
Rationale: The agreement between the property owner and tenant is a bilateral contract, as both parties exchange promises: the owner promises to provide housing, while the tenant promises to pay rent.
Option A, conditional, refers to contracts dependent on specific conditions, which is not applicable here. Option B, assigned, involves transferring rights or obligations to another party, which doesn’t describe the original agreement. Option C, implied, involves unspoken agreements based on actions rather than explicit terms, which does not fit the written agreement in this case. Therefore, the nature of the contract is bilateral, highlighting mutual obligations.
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