What types of contracts are considered bilateral?

Bilateral contracts are agreements in which both parties make promises to each other. In the context of real estate, this is particularly relevant when discussing listings and agreements between agents and clients.

The Exclusive Right to Sell Listing and Exclusive Agency Listing are both considered bilateral contracts because they involve commitments from both the seller and the real estate broker. In an Exclusive Right to Sell Listing, the broker is given the exclusive right to sell the property, and in return, the broker agrees to use their efforts to market and sell the property. Here, the seller promises to compensate the broker regardless of who sells the property, while the broker promises to actively promote the seller's property.

Similarly, an Exclusive Agency Listing also establishes a mutually binding agreement where the seller agrees to work with one broker, and in return, the broker promises to help sell the property. However, in this case, if the seller finds a buyer on their own, they may not owe a commission to the broker.

Understanding that both contract types involve promises from both parties highlights their bilateral nature, affirming that both the seller and broker have responsibilities within these agreements. This sets them apart from unilateral contracts, where only one party makes a promise. Therefore, the answer correctly identifies both types of exclusive listings as bilateral