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Real estate glossaryNational exam concept

Unilateral contract

A unilateral contract is an offer of a promise that is accepted by completing the requested performance rather than by making a return promise.

Exam area: Contracts

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What does “unilateral contract” mean in real estate?

A unilateral contract is an offer of a promise that is accepted by completing the requested performance rather than by making a return promise.

How is “unilateral contract” different from the closest wrong answer?

Unilateral means promise for performance. Bilateral means promise for promise.

What is the Georgia-specific rule?

The national rule applies in Georgia. An option is unilateral in effect before exercise because the optionee has the right but no obligation to buy.

Worked exam example

Scenario

An owner promises a reward to a broker who produces a stated result, and no one is bound to act until the required performance occurs.

What is the most common exam trap?

Trap correction

One party speaking first does not make a contract unilateral. Examine the method of acceptance.

Original exam check

Apply the definition

An owner tells a roofer, “I will pay you $4,000 if my roof is repaired by Friday.” The roofer makes no promise but finishes the work on Thursday. What kind of contract was formed?

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Recommended next complete lesson

Continue with Contracts complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.