New Jersey Real Estate License Exam Practice Question
Which of the following differentiates a bilateral contract from a unilateral contract?
Correct Answer: B
Rationale: Bilateral contracts involve mutual promises where both parties have performance obligations, while unilateral contracts require only one party to fulfill an obligation upon the other party's action. Option A is incorrect as both types involve two parties; the distinction lies in their obligations. Option C does not differentiate the contracts, as both can involve varying values. Option D is also misleading, as both contract types can pertain to any type of property. The key difference lies in who is obligated to perform, making performance obligations the defining factor.
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