PSI Virginia Real Estate Practice Exam

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Prepare for the Virginia Real Estate Exam with our interactive quiz. Study using multiple choice and flashcards, complete with hints and detailed explanations. Ace your test with confidence!

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In a unilateral contract, what must occur for the contract to be binding?

Only one party needs to perform
Both parties must agree on all terms
It must be executed in writing
All parties must approve changes

The correct answer is: Only one party needs to perform

In a unilateral contract, the essence of its binding nature is that only one party has made a promise or commitment, while the other party is not obligated to act but may choose to accept the offer through performance. This type of contract becomes binding when the party to whom the offer is made performs the act specified in the contract. For instance, if one party offers a reward for the return of a lost item, the contract is created when someone finds and returns that item, fulfilling the terms of the unilateral contract. The original offeror is then legally bound to provide the reward. The other choices imply conditions that apply to bilateral contracts or are unnecessary for the formation of a unilateral contract. A unilateral agreement focuses on the performance from one party as the key to its enforceability.