Ace The Introductory Business Law CLEP 2025 – Smash Your Way to Success!

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What type of contract requires both parties to honestly disclose all known information?

Bilateral Contract

Unilateral Contract

While all contracts require honesty and good faith, only a unilateral contract requires both parties to disclose all known information. A bilateral contract is formed when both parties exchange promises, not disclosure of information. An executory contract is one that is still to be performed by both parties, so disclosure is not relevant. An executed contract has already been completed, so disclosure is not necessary before formation.

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Executory Contract

Executed Contract

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