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Types of Contracts

Raj went to the Napa Valley Harvest Festival, where he stopped at Tina's booth where she was selling paintings of vineyards. Raj admired a painting of vineyards, which did not appear to be for sale. Raj said to Tina, "I will give you $200 if you give me that painting right now." Tina gave Raj the painting, and Raj gave her $200 in cash. This is an example of a contract that is:
a) Bilateral and executed. c) Unilateral and executed.
b) Bilateral and executory. d) Unilateral and executory.

Solution Preview

The correct answer is (c) Unilateral and executed.

Why? Let's first look at the definitions of bilateral and unilateral.

Bilateral: Both parties promise something in exchange for the other party's promise.
Unilateral: One party promises something in exchange for performance.

In keeping with these ...

Solution Summary

This solution provides an answer to the multiple choice question on a scenario about the different types of contracts and explains why the right answer is correct. It also explains the difference between executed and executory contracts.