What makes a purchase and sale agreement a bilateral contract?

A purchase and sale agreement is considered a bilateral contract because it involves mutual promises between two parties. In this context, the buyer's promise to pay a specified price for the property and the seller's promise to convey ownership through a deed create binding obligations for both parties.

When the buyer agrees to pay the contract price, they are making a commitment that is contingent upon the seller fulfilling their part of the agreement, which is to provide the deed to transfer property ownership. This mutual exchange of promises establishes the bilateral nature of the contract, as both parties have responsibilities that, when fulfilled, result in a legally binding transaction.

The other options provided do not accurately reflect the mutual commitments required for a bilateral contract. While they may describe aspects of what occurs within a real estate transaction, they fail to illustrate the essential element of two clear promises that characterize a bilateral agreement. Thus, the selection highlighting both the buyer's promise to pay and the seller's promise to provide a deed rightly identifies the defining nature of the contract in question.