Which of the following describes a bilateral contract?

A bilateral contract is defined as an agreement in which both parties make mutual promises to each other. This means that one party's promise serves as consideration for the other's promise, creating an obligation on both sides to fulfill their respective commitments. By accepting this definition, it's clear that a promise in exchange for a promise aligns perfectly with the essence of a bilateral contract, as both parties are bound to perform their respective duties.

The other options do not accurately capture the nature of a bilateral contract. A promise for a performance refers more to a unilateral contract, where one party makes a promise contingent upon the performance of an act by the other party. A verbal agreement might be part of a contractual negotiation but does not inherently signify a bilateral contract, as contracts can also be written or implied. An offer subject to conditions suggests a contingent agreement, but it lacks the mutual promise aspect essential to the definition of a bilateral contract, which requires both parties to make promises to each other directly.