Windsor, the owner of Windsor's Sandwiches contacts a new supplier Gary.He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning.Gary promises to make the delivery as requested by Windsor.This creates a ________ contract between them.

Question

Quizplus · Accepted Answer

A bilateral contract is created when both parties exchange promises. In this case, Windsor promises to pay Gary and Gary promises to deliver the cheese. Therefore, a bilateral contract exists between them. Option A is incorrect because, in a unilateral contract, only one party makes a promise, and the other party can accept by performing the requested act. Option C, implied-in-law contract, also known as quasi-contract, is created by the law to prevent unjust enrichment and is not formed by mutual agreement. Lastly, option D, executory contract, is a contract where one or both parties still have obligations to fulfill. This option does not apply here because the contract has not been completed yet.

Windsor, the Owner of Windsor's Sandwiches Contacts a New Supplier