In bilateral contracts, what do both parties promise?

In bilateral contracts, both parties provide mutual promises, meaning that each party agrees to fulfill specific obligations outlined in the contract. This means that for a contract to be considered bilateral, both sides must commit to perform their respective duties as specified. For example, in a sales contract, one party agrees to deliver a product, while the other agrees to pay for it. This mutual exchange of promises forms the foundation of the contractual relationship.

The other choices do not correctly reflect the nature of bilateral contracts. Negotiating terms might be a preliminary step, but it doesn't constitute the fulfillment of the contract itself. Paying a fixed premium monthly is more specific to insurance policies, and while it might reflect an obligation in an insurance contract, it's not representative of all bilateral contracts. Maintaining long-term insurance coverage also does not capture the essence of the mutual promise aspect of bilateral agreements. Hence, the core definition of bilateral contracts centers on the fulfillment of agreed-upon obligations by both parties.