Types of Contracts: Unilateral, Bilateral, Trilateral, and Multilateral

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10 Questions

If you offer a general reward for finding your lost pen, which type of contract is created?

Unilateral contract

What type of contract involves two parties making promises to each other?

Bilateral contract

In a trilateral contract, how many parties are involved in making promises?

Three

What type of contract involves more than three parties making promises to each other?

Multilateral contract

If you make a promise in return for a promise from another party, what type of contract are you engaged in?

Bilateral contract

What is the key difference between a unilateral contract and a bilateral contract?

In unilateral contracts, only one party is bound, whereas in bilateral contracts, two parties make promises to each other.

What distinguishes a multilateral contract from a trilateral contract?

A trilateral contract involves only two parties, whereas a multilateral contract involves more than three parties.

What characterizes a unilateral contract?

Only one party is bound to perform, but it is still a valid contract.

How does a bilateral contract differ from a multilateral contract?

Bilateral contracts involve only one party making promises, while multilateral contracts involve multiple parties.

Which statement best describes the nature of trilateral contracts?

In trilateral contracts, each party makes a promise to another party involved.

Learn about the different types of contracts based on the number of parties involved. Understand the distinctions between unilateral, bilateral, trilateral, and multilateral contracts with examples.

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