Which of the following represents a characteristic of a bilateral contract?

A bilateral contract is defined by the mutual exchange of promises between two parties, meaning that both parties are bound to fulfill their respective obligations as outlined in the contract. This mutual obligation is a defining characteristic of bilateral contracts, distinguishing them from unilateral contracts, where only one party is required to perform.

For example, in a typical bilateral contract for the sale of goods, one party agrees to deliver a product, while the other party agrees to pay for it. Both parties have clear commitments to each other, which is essential for the contract's validity and enforceability.

Understanding this characteristic helps clarify how contracts function in legal terms and emphasizes the importance of mutual agreements in creating legally binding relationships between parties.