What type of contract legally obligates all parties to fulfill their promises?

A bilateral contract is an agreement between two parties where both parties make promises to each other. This type of contract creates mutual obligations, meaning that both parties are legally bound to fulfill their commitments as outlined in the agreement. For example, in a typical real estate transaction, the seller promises to transfer ownership of the property to the buyer, while the buyer promises to pay a specific amount of money to the seller. As a result, both parties have a clear legal obligation to perform their respective duties, ensuring that the contract is enforceable.

In contrast, a unilateral contract involves only one party making a promise that the other party can accept through their action, meaning only one party is obligated to perform. A conditional contract would depend on the occurrence of a specific event before obligations are enacted, which makes it contingent. An implied contract, on the other hand, is formed based on the actions or conduct of the parties rather than an explicit agreement, which can create ambiguities regarding the obligations. Therefore, a bilateral contract is the type of contract that clearly assigns legal obligations to all parties involved.