Which of the following describes a commutative contract?

A commutative contract is characterized by the exchange of benefits that are assured and correspond to one another. In such contracts, the parties involved have a clear understanding of the obligations they are entering into, and each party’s performances or exchanges are expected to provide reciprocal value. This means that the contract is designed in such a way that each participant knows they will receive something of equal or predetermined value in return for what they are giving.

In the context of the other options, the first choice refers to unequal exchanged values, which does not align with the principle of commutative contracts, where equality in benefits is a key component. The second choice discusses a contract involving only one obligation; however, commutative contracts typically involve mutual obligations that reflect the exchange of value. The last option mentions a contract made without consideration, whereas commutative contracts inherently rely on the concept of consideration, as both parties must provide something of value for the contract to be valid.