Windsor, the owner of Windsor's Sandwiches, contacts Gary, a new supplier. He promises Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. What type of contract is formed and why?

bilateral contract

Explanation:

Based on the information given in the question, the type of contract formed is a bilateral contact.

A bilateral contract refers to a contract whereby both parties that are involved make promises to perform a certain action. The promise of some party will be the consideration on which the promise of the other party will be based.

Since Windsor promises Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning and Gary promises to make the delivery as requested by Windsor, then this is a bilateral contract.

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