Carrie promises Tim she will clean his house and in exchange, Tim promises to pay Carrie $50. This is an example of what type of contract?
A) A unilateral contract
B) A bilateral contract
C) An implied contract
D) A contract created through promissory estoppel
E) An invalid contract

Question

Quizplus · Accepted Answer

This is an example of a bilateral contract because it involves a promise for a promise. Carrie promises to clean the house, and Tim promises to pay $50 in return. Both parties have made promises to each other, which is characteristic of a bilateral contract.

Carrie Promises Tim She Will Clean His House and in Exchange