New York Real Estate Salesperson ExaminationContractsEasy
A real estate agent is explaining the types of contracts to a client. The agent describes a contract where one party makes a promise in exchange for an act from the other party. What type of contract is the agent describing?
- AImplied contract
- BBilateral contract
- CUnilateral contract
- DExecutory contract
Show answer & explanationAnswer & explanation
Correct answer: C. Unilateral contract
A unilateral contract is a contract where one party makes a promise in exchange for an act from the other party. The contract is formed when the act is performed.
Why the other options are wrong
- A. An implied contract is created by the actions of the parties, not explicit promises.
- B. A bilateral contract involves a promise for a promise.
- D. An executory contract is one that has not yet been fully performed by both parties.
Unilateral Contract
A contract in which one party makes an express promise and the other party performs an act in response.
- Promise for an act.
- Contract formed upon completion of the act.
- Example: 'I will pay you $100 if you mow my lawn.'
Memory trick: Uni-act, Bi-promise: Unilateral means one act, Bilateral means two promises.