Open Listing Example Contract

An open listing is an example of a:

  1.  bilateral contract
  2.  executed contract
  3.  unilateral contract
  4.  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.