Question

1. Smith and Sarah make an agreement that Smith will give Sarah his smart phone if Sarah pays Smith $200.00. They agree in writing.

What is true:

1. This is both an executed contract and a unilateral contract.
2. This is an express contract that will be in force once Smith and Sarah exchange the smart phone and the money.
3. This is a unilateral contract and only Sarah has to pay Smith once Smith has given Sarah the smart phone.
4. This is a promise for an act which is a unilateral contract and can only be enforced once Sarah pays Smith the $200.00.
5. This is an express contract and a bilateral contract.

Answer 1

Hey there!

First you have to understand few terms here.

First lets talk about Bilateral contract. A bilateral contract is when 2 parties promises ech other something and come into contract. For example lets say Tim promises Rocky to pay 100$ . But in return Tim wants Rocky to promise to do his house chores for him. So they both make a promise. So Rocky does the work and gets the 100$. Here we could see that Tim and Rocky both make a promise to one another. There are 2 promises involved. Hence a Bilateral promise. In our case, Sarah doesnt make an agreement here. The contract comes into action only if Sarah is willing to pay 200$. HENCE IT IS NOT A BILATERAL CONTRACT.

It is only an executed contract if the action / promises are performed wholly and completed. Here Sarah didn't buy the phone yet. Hence not executed. HENCE NOT AN EXECUTED CONTRACT.

An express contract is when 2 parties make a conract through words or by writing. Here in this case we could say that IT IS AN EXPRESS CONTRACT. If you know what express contract is , you should be knowing implicit contract as well. For example, Tim and Rocky gets into a restaurant and orders burgers. Well it is known that someone has to pay at the end. There was no promise of who would be pay before getting into the restaurant. Tim and Rocky knows that one of them has to pay and it is the system to perform. This is called an implicit contract.

Now lets talk about the UNILATERAL CONTRACT. If one party does a promise if something is done in return then it is unilateral promise. There is only one promise and action involved. Now lets see it with Tim and Rocky. Rocky promises Tim 500$ if he made his house clean. But it is upto Tim if he wants to clean the house or not. Tim hadn't made any promise here that he would clean the house. If he does the job he gets the 500$ or he gets nothing. The same implies with Sarah and Smith as well. Smith has promised Sarah his phone only if Sarah pays him 200$. It is upto Sarah to pay him or not. She could take it or leave if. There ain't no promise here by Sarah. A prmose is done only by Smith here. Hence IT IS A UNILATERAL CONTRACT.

THE RIGHT ANSWER IS OPTION D.

I hope you get the idea by now. Cheers :)