An open listing is an example of a:
- bilateral contract
- executed contract
- unilateral contract
- discharged contract
The answer is C. An open listing is an example of a unilateral contract because the owner/seller is making a promise to provide payment to ANY procuring agent if a buyer with a valid offer is brought. Since only one party (the seller) is making a promise in this case, the contract is considered unilateral.
If this were an exclusive agency and right to sell contract then this would be a bilateral contract since both the owner and the owner’s agent are making a promise to each other – agent provides fiduciary duty and owner provides compensation when an able buyer is produced.
A great way to remember what a unilateral contract is, is by thinking of a reward for a lost dog. The owner of the dog is providing a promise to pay a reward, but no one else is making any promises – hence the contract is unilateral and one sided.