An agreement for the sale of a house is classified as which type of contract?

A contract for the sale of a house is classified as a bilateral contract because it involves mutual promises between two parties. In this scenario, one party agrees to sell the house, while the other agrees to purchase it, creating an obligation for both parties. Each side is responsible for performing their part of the agreement: the seller is obligated to transfer ownership of the property, and the buyer is obligated to pay the agreed-upon price.

Bilateral contracts are characterized by the exchange of promises, contrasting with unilateral contracts, where only one party makes a promise in exchange for an action from another party. For example, if someone offers a reward for finding a lost pet, that is a unilateral contract, since only the offeror makes a promise.

Additionally, while a verbal contract could sometimes refer to an agreement made through spoken communication, real estate transactions typically must be in writing to be enforceable under the Statute of Frauds, making that option less applicable in this context. Temporary contracts generally refer to agreements that are designated for a specific period or purpose and wouldn't apply in the same way as a real estate transaction, which is usually intended to be lasting and transferred outright. Thus, the nature of a house sale aligns best with the definition of a bilateral contract