Which type of contract is an Exclusive Right of Sale Listing categorized as?

Which type of contract is an Exclusive Right of Sale Listing categorized as?

• A. Unilateral
• B. Bilateral
• C. Revocable
• D. Implied

Answer: (B)

An Exclusive Right of Sale Listing is categorized as a bilateral contract because it involves mutual obligations between the seller and the real estate agent. In this type of listing agreement, the seller commits to pay the broker a commission if the property is sold during the listing period, regardless of who actually sells the property, while the broker agrees to actively market the property and assist in the sale. This mutual exchange of promises and duties clearly characterizes a bilateral contract, as both parties are required to fulfill specific obligations: the seller to pay the commission and the broker to provide their services in selling the property. The presence of these reciprocal obligations distinguishes it from unilateral contracts, where only one party makes a promise.

An Exclusive Right of Sale Listing is categorized as a bilateral contract because it involves mutual obligations between the seller and the real estate agent. In this type of listing agreement, the seller commits to pay the broker a commission if the property is sold during the listing period, regardless of who actually sells the property, while the broker agrees to actively market the property and assist in the sale.

This mutual exchange of promises and duties clearly characterizes a bilateral contract, as both parties are required to fulfill specific obligations: the seller to pay the commission and the broker to provide their services in selling the property. The presence of these reciprocal obligations distinguishes it from unilateral contracts, where only one party makes a promise.