What type of relationship does a bilateral contract typically involve?

A bilateral contract involves a mutual exchange of promises between two parties. This means that each party commits to fulfilling certain obligations as specified in the contract. For instance, one party might promise to deliver a good or service, while the other promises to pay for it. This reciprocal nature is what distinguishes bilateral contracts from unilateral contracts, where only one party makes a promise that the other party can accept through performance.

In a bilateral contract, the agreement reflects the intentions of both parties to engage in a transaction, establishing a clear framework of rights and duties that rely on each other's performance. The enforceability of this type of contract hinges on this mutuality; both sides must fulfill their promises for the contract to be honored.

The other types of relationships suggested in the choices do not accurately capture the essence of a bilateral agreement. A one-sided agreement implies that only one party is bound to perform, while an implied understanding does not constitute a formal exchange of promises. Lastly, a verbal agreement may or may not be a bilateral contract, as contracts can also be written. Therefore, the characteristic that defines a bilateral contract is fundamentally its mutual exchange of promises.