California Real Estate Practice Exam

What type of contract is an exclusive authorization and right to sell agreement considered?

1. Unilateral contract

2. Express bilateral contract

3. Implied contract

4. Voidable contract

The correct answer is: Express bilateral contract

An exclusive authorization and right to sell agreement is considered an express bilateral contract. This type of contract is a legally binding agreement that involves mutual promises between two parties. In this case, the seller promises to only sell the property to the authorized agent, while the agent agrees to use their best efforts to find a buyer. A unilateral contract is an agreement where only one party makes a promise and the other party's action is acceptance of that promise. This is not applicable in this scenario since both parties are making promises to each other. An implied contract is one where the terms and conditions are not explicitly stated, but are still legally binding based on the actions and conduct of the parties involved. This is also not applicable in this situation as the terms and conditions of an exclusive authorization and right to sell agreement are explicitly stated in the contract. Lastly, a voidable contract is an agreement that can