Questions: In the context of contracts formed by promises, a bilateral contract is defined as: A) an agreement in which a promise is made in exchange for performance. B) an agreement wherein at least one party has the right to withdraw without incurring liability. C) one that appears to be an agreement but lacks an essential requirement for validity. D) a judicial remedy to prevent one party from receiving unjust enrichment. E) an agreement containing mutual promises.

The answer is E: an agreement containing mutual promises.

Explanation for each option:

A) An agreement in which a promise is made in exchange for performance describes a unilateral contract, not a bilateral contract. In a unilateral contract, one party makes a promise in exchange for the other party's performance.

B) An agreement wherein at least one party has the right to withdraw without incurring liability does not accurately describe a bilateral contract. This option might refer to a voidable contract, where one party can withdraw under certain conditions.

C) One that appears to be an agreement but lacks an essential requirement for validity describes a void or unenforceable contract, not a bilateral contract. A bilateral contract is valid and enforceable as long as it meets all legal requirements.

D) A judicial remedy to prevent one party from receiving unjust enrichment refers to the legal concept of restitution or a quasi-contract, not a bilateral contract.

E) An agreement containing mutual promises accurately defines a bilateral contract. In a bilateral contract, both parties exchange promises, and each promise serves as consideration for the other.