PSIA potential buyer signs a contract with performance or damages unless theA. a bilateral…

➤ Why is an option contract treated differently from a bilateral contract?
A bilateral contract contains immediate, mutual promises that create enforceable duties for both parties. An option gives the buyer a one-sided right to decide. The seller must keep the offer open, but the buyer can decline. That absence of mutual obligation prevents courts from forcing the buyer to perform before the option is exercised.