California Real Estate SalespersonContractsEasy
A homeowner tells a broker, "If you find me a buyer, I'll pay you a 6% commission," but the broker makes no promise to perform any specific act. This type of contract, where only one party makes a promise in exchange for the other party's performance, is best classified as:
- AA unilateral contract
- BAn executed contract
- CA voidable contract
- DA bilateral contract
Show answer & explanationAnswer & explanation
Correct answer: A. A unilateral contract
In a unilateral contract, only one party makes a promise, and the other party accepts by performing an act rather than making a return promise. An open listing is a classic example of a unilateral contract.
Why the other options are wrong
- B. Executed refers to a contract fully performed, not the type of promise structure.
- C. Voidable relates to a defect allowing one party to disaffirm, not the promise structure.
- D. A bilateral contract requires promises from both sides, not just one.
Unilateral Contract
A contract in which only one party makes a promise, and acceptance occurs through performance of an act rather than a return promise.
- Open listings are typically unilateral contracts
- Acceptance = performance, not a promise
- Contrasts with bilateral contracts where both parties exchange promises
Memory trick: Uni = one promise; Bi = both promise