Lamar offers to pay Melanie $150 for a hot-air balloon ride for Nina.They agree to meet at dawn the next day to exchange the cash for the ride.At this point, these parties have

Question

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A bilateral contract is a contract in which both parties make promises, and in this case, Lamar promises to pay Melanie $150 and Melanie promises to give Nina a hot-air balloon ride. Therefore, both parties have made promises, and a bilateral contract is formed. A trilateral contract would involve three parties, but there are only two parties in this scenario. A unilateral contract would involve one party making a promise in exchange for an act, but in this scenario, both parties are making promises. Therefore, the best choice is A) a bilateral contract.

Lamar Offers to Pay Melanie $150 for a Hot-Air Balloon