A bilateral contract is formed by

A bilateral contract is formed by

• A. Acceptance by promise to perform
• B. Acceptance by performance of the act requested
• C. Silence as acceptance
• D. A rejection

Answer: (A)

Bilateral contracts arise from a mutual exchange of promises. When the offer invites a return promise, acceptance is by promising to perform, which creates a promise-for-promise agreement and binds both parties. If acceptance were by performing the requested act, that would typically describe a unilateral contract, where performance, not a promise, forms the contract. Silence is not acceptance in this context, and a rejection ends the deal.

Bilateral contracts arise from a mutual exchange of promises. When the offer invites a return promise, acceptance is by promising to perform, which creates a promise-for-promise agreement and binds both parties. If acceptance were by performing the requested act, that would typically describe a unilateral contract, where performance, not a promise, forms the contract. Silence is not acceptance in this context, and a rejection ends the deal.