Taylor posts an advertisement offering to sell a car for $10,000. Jordan responds by stating, "I agree to buy the car for $10,000 if you deliver it by next Wednesday." Taylor begins preparing the car for delivery on Tuesday. What type of contract has been formed between Taylor and Jordan?
A bilateral contract is formed when both parties exchange mutual promises. Here, Taylor promises to sell the car, and Jordan promises to buy it, creating reciprocal obligations.
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