New Jersey Real Estate Practice Exam Free Practice Question
Which of the following differentiates a bilateral contract from a unilateral contract?
Correct Answer: B
Rationale: In a bilateral contract, both parties exchange mutual promises, creating performance obligations for each, while in a unilateral contract, only one party makes a promise in exchange for a performance from the other. This distinction in obligations is fundamental to differentiating the two types of contracts.
Option A is incorrect as both contracts involve two parties. Option C does not apply since the value of the object can vary in both contracts. Option D is also misleading; both contract types can pertain to any type of property. Thus, the key differentiator lies in the performance obligations established.
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