Which of these situations represents a unilateral contract?

Study for the CAS 45-Hour Real Estate Principles Course Test. Utilize flashcards and multiple choice questions to prepare thoroughly. Each question is paired with hints and explanations. Get ready to excel in your exam!

A unilateral contract is a type of agreement in which one party makes a promise or offers something to another party, but only one party is obligated to perform. In this context, option B illustrates a unilateral contract where Sherry promises to give Brent a ride home from work. Here, Sherry has committed to perform a specific act—providing transport—while Brent is not obligated to do anything in return for that promise.

If Sherry does not show up, she is not fulfilling her commitment, thereby not creating any obligation on Brent’s side despite his expectation. Brent never had an obligation to take any action or make a promise in return. This one-sided nature is what defines the unilateral contract here.

The other options represent different types of agreements. The first option describes a bilateral contract, where both parties agree to exchange money for a service, creating mutual obligations. The third option also reflects a bilateral agreement, where each friend agrees to share expenses, indicating mutual commitments from both parties. The fourth option is indicative of an offer that leads to a bilateral contract once it is accepted, as it requires both parties to agree for the obligations to take effect. Each of these examples embodies a mutual exchange of promises or obligations, which distinguishes them from a unilateral contract

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