10.3 Classification of Contracts

Oral vs. Written: Oral contracts may be valid, but most real estate contracts must be written to be enforceable.
Express vs. Implied: Express contracts state all terms; implied contracts are based on actions or circumstances.
Bilateral vs. Unilateral:
- Bilateral: Both parties promise to perform (e.g., purchase agreement).
- Unilateral: Only one party promises to perform if the other acts (e.g., option contract).
Executed vs. Executory:
- Executed: All terms have been fulfilled.
- Executory: Some obligations remain to be performed (e.g., before closing).

Which of the following is an example of a unilateral contract?
A purchase and sale agreement
An exclusive right-to-sell listing
An option contract
A lease agreement

Show Answer

Correct Answer: An option contract