Contracts
A unilateral contract in real estate is characterized by:
ABoth parties making promises to each other simultaneously
BOne party making a promise in exchange for the other party's performance of an act✓ Correct
CA contract signed by only one party
DA contract that can be cancelled by either party without penalty
Explanation
A unilateral contract involves only one party making a promise, in exchange for the other party's actual performance of an act. An option contract is a classic example — the optionor promises to keep the offer open, and the optionee pays consideration. The optionee is not obligated to perform (buy).
Related Iowa Contracts Questions
- In Iowa, an offer to purchase becomes a binding contract when:
- Iowa's contract integration clause (merger clause) states that:
- Under Iowa real estate contract law, the term 'time is of the essence' means:
- A contract term stating 'time is of the essence' means:
- Which Iowa doctrine protects a buyer who records an interest in property without actual knowledge of a prior unrecorded interest?
- In Iowa, an option contract in real estate gives the optionee the:
- A purchase agreement that includes an inspection contingency typically allows the buyer to:
- An Iowa purchase agreement includes an escalation clause stating the buyer will beat any competing offer by $2,000 up to a maximum of $315,000. A competing offer comes in at $308,000. What is the buyer's escalated price?
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