Contracts
What is 'unilateral contract' as applied to a Rhode Island real estate option?
AA contract signed by only one party
BA contract in which only one party is bound to perform; an option is unilateral because only the optionor (seller) is bound to sell if the optionee exercises the option✓ Correct
CA contract between a sole proprietor and a broker
DA contract that can be cancelled by either party
Explanation
An option is a unilateral contract: only the optionor (seller) is bound to sell if the optionee chooses to exercise the option. The optionee has the right but not the obligation to purchase. Upon exercise, it becomes a bilateral (two-party) contract.
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