What type of agreement requires both parties to perform certain duties for the contract to remain enforceable?

The correct choice, which identifies a type of agreement that requires both parties to perform certain duties for the contract to remain enforceable, is the conditional contract. In a conditional contract, the obligations of one or both parties to perform are contingent upon the occurrence of a specific event or condition. This means that if the condition is not met, the contract may not be enforceable.

For instance, if a contract states that one party must provide services and the other party must make a payment, but this is dependent on a third-party inspection occurring, the duties of both parties are intertwined with that condition. If the condition fails, then neither party may be obligated to fulfill their part of the agreement.

Understanding conditional contracts is crucial for adjusters and those in the insurance field, as many agreements have dependencies that could impact claims and coverage decisions. This makes it clear that the enforceability of such contracts hinges on these specified conditions being met.