10.3 Classification of Contracts

10.3 Classifications 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).