California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the major difference between a unilateral and a bilateral contract?

In a unilateral contract, both parties must act.
In a bilateral contract, only one party must act.
In a unilateral contract, only one party must act; in a bilateral contract, both parties must act.
There is no difference.

The correct answer is: In a unilateral contract, only one party must act; in a bilateral contract, both parties must act.

A unilateral contract is an agreement where one party makes a promise or offer to the other party, who can then choose to accept the offer by performing a specific action. In this type of contract, only one party is obligated to act. On the other hand, a bilateral contract is an agreement where both parties make promises to each other and both parties are obligated to act in order for the contract to be fulfilled. Therefore, the major difference between a unilateral and a bilateral contract is the number of parties obligated to act. Option A and B are incorrect as they incorrectly state that both parties must or only one party must act, respectively. Option D is also incorrect as it is a clearly false statement and disregards the definition of the two types of contracts.