A contract requiring both parties to meet certain conditions to remain valid is known as what type of contract?

A contract that requires both parties to meet certain conditions to remain valid is classified as a conditional contract. This type of contract is characterized by the fact that obligations or enforceability depend on the occurrence of a specific event or the fulfillment of certain criteria set forth within the agreement. For example, in an insurance contract, the insurer's obligation to pay a claim may be contingent on the insured fulfilling specific conditions, such as timely premium payments or adherence to the terms of the policy.

In contrast, unilateral contracts involve one party making a promise in exchange for an act from the other party, where the other party's performance does not require a reciprocal promise. Adhesion contracts are typically take-it-or-leave-it agreements where one party has significantly more power than the other in drafting the terms, often seen in standard form agreements. Commutative contracts involve a mutual exchange of values that are equal or of a known quantity. In summary, the defining feature of a conditional contract is the necessity for both parties to fulfill specific obligations for the contract to remain valid.