In contract law, which of the following describes obligations that must be performed by both parties?

Mutual obligations are key in contract law as they refer to the duties that both parties agree to perform under the terms of a contract. This concept is foundational to the idea of a contract being a two-way street, where each party has something to offer and something to gain. For a contract to be enforceable, both parties must have specific responsibilities that align with the agreement. This alignment ensures that the contract is balanced and fair, fostering trust and commitment between the parties involved.

In contrast, unilateral obligations involve a commitment that is only required from one party, meaning the other party does not have any corresponding duty. Indemnity obligations relate specifically to compensating one party for certain losses or damages, not to mutual performance. Conditional obligations depend on specified conditions being met, which may not necessarily involve performance by both parties. Thus, mutual obligations accurately encapsulate the essence of a reciprocal agreement, embodying the principle that both parties are bound to fulfill their contractual duties.