Luke signs an open listing agreement with agent Raelynn. This contract is classified as what type?

An open listing agreement is characterized as an executory unilateral contract because it involves one party—the property owner, Luke—granting the right to sell to multiple agents without any obligation to compensate them unless they bring a buyer that results in a sale. In this arrangement, Luke is not bound to work exclusively with Raelynn, nor is he obligated to pay her unless she succeeds in selling the property.

In the context of contracts, "executory" means that the terms of the contract will be fulfilled in the future, which is the case here, as the sale of the property has yet to take place. "Unilateral" indicates that only one party (Luke, the seller) has made a promise and the agent’s only obligation is to find a buyer. This setup emphasizes the seller's freedom to work with multiple agents, which is integral to the nature of an open listing agreement.

Understanding the formulation of such contracts helps in grasping how commission structures and agent relationships function within the real estate framework.