Which of the following BEST describes a unilateral contract in California real estate?
Correct Answer
B) One party makes a promise that becomes binding only when the other party completes a specified act
A unilateral contract involves a promise by one party in exchange for performance — not a counter-promise — by the other party. The promisor is bound only when the other party completes the requested act. An open listing agreement is a common real estate example: the seller promises a commission, but only if the broker actually produces a ready, willing, and able buyer. The broker has no obligation to perform.
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A buyer in California submits an offer on a property in Ventura using the CAR Residential Purchase Agreement. The offer is made through electronic signatures using DocuSign. The seller's agent questions whether electronic signatures are legally valid for California real estate contracts. What should the listing agent advise?
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