Contracts

    Bilateral vs Unilateral Contract

    A bilateral contract is a promise for a promise; a unilateral contract is a promise in exchange for an act.

    In a bilateral contract, both parties make promises, such as a listing agreement where the seller promises to pay and the broker promises to market the property. In a unilateral contract, one party promises to perform only if the other party acts.

    An option contract is unilateral: the seller is bound to sell if the buyer exercises the option, but the buyer is not obligated to buy.

    On the exam

    Bilateral is a promise for a promise. Unilateral is a promise for an act, like an option contract.

    Exam trap

    An option contract is unilateral, not bilateral. Only one party, the optionor, is bound to perform.

    Tested in

    Contracts (12% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.