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National curriculum lesson 82 · Contracts

Contract Classifications

Express contracts state terms in words; implied contracts arise from conduct. Bilateral contracts exchange promises, while unilateral contracts exchange a promise for requested performance. Executory contracts still have material performance due; executed contracts have been performed. These labels describe different dimensions and can overlap.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Express contracts state terms in words; implied contracts arise from conduct. Bilateral contracts exchange promises, while unilateral contracts exchange a promise for requested performance. Executory contracts still have material performance due; executed contracts have been performed. These labels describe different dimensions and can overlap.
Official syllabus mapping for Contract Classifications
Roadmap lesson82 of 500
Official syllabus topicContract Classifications
Official PSI areaContracts
Published area weight19% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Express and implied

Express terms may be oral or written. An implied-in-fact agreement is inferred from conduct and circumstances, not merely from fairness.

Bilateral and unilateral

Most purchase agreements are bilateral because buyer and seller exchange promises. An option is commonly analyzed as unilateral during the option period because the optionee is not required to exercise.

Executed and executory

A fully performed contract is executed. A signed purchase contract awaiting closing is executory even though it is binding.

Validity labels

Valid, void, voidable, and unenforceable concern legal effectiveness. They do not replace labels describing expression, promise structure, or performance.

Decision rule

Ask which dimension the question tests: how formed, what exchanged, whether performed, or whether enforceable.

Georgia-specific distinction

Georgia exam scenarios can combine labels. A signed Georgia purchase agreement awaiting closing can be express, bilateral, valid, and executory at the same time.

Worked example

Scenario. Buyer and seller sign a purchase agreement and closing is next month.

Reason it through. The terms are written, each party made promises, and material performance remains.

Answer. The contract is express, bilateral, and executory, assuming it is otherwise valid.

Common exam traps

  • Calling signed contracts executed
  • Assuming express means written only
  • Treating labels as mutually exclusive
  • Calling every option bilateral

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

A signed purchase agreement awaiting closing is usually what?

  1. A. Executed
  2. B. Executory
  3. C. Void
  4. D. Implied only
Show answer and explanation →

Answer: B. Executory

The parties still owe material performance, including closing obligations.

Question 2

Which contract arises from conduct?

  1. A. Implied-in-fact
  2. B. Express written only
  3. C. Void
  4. D. Recorded
Show answer and explanation →

Answer: A. Implied-in-fact

Conduct and circumstances can demonstrate an implied agreement.

Question 3

Most purchase contracts are bilateral because what occurs?

  1. A. Promises are exchanged
  2. B. Only one party acts
  3. C. No consideration exists
  4. D. Title has already passed
Show answer and explanation →

Answer: A. Promises are exchanged

Buyer and seller exchange enforceable promises.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Offer, Acceptance, Counteroffers, and Electronic Contracting. Continue to roadmap lesson 83 and build on this decision rule.

Return to the Contracts hub to see every official branch and the complete lesson sequence for this content area.

Contract Classifications questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Contract Classifications on the Georgia real estate exam?

Yes. It belongs to PSI's Contracts content area, which is 19% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Contract Classifications?

Ask which dimension the question tests: how formed, what exchanged, whether performed, or whether enforceable.

What Georgia-specific distinction should I remember?

Georgia exam scenarios can combine labels. A signed Georgia purchase agreement awaiting closing can be express, bilateral, valid, and executory at the same time.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.