Desmond's agreement with the Harpers to sell their home is classified as which type of agreement?

Study for the Affiliate Broker Tennessee National Exam. Practice with flashcards and multiple choice questions, with hints and explanations. Prepare well for your licensing exam!

Desmond's agreement with the Harpers to sell their home is classified as a bilateral agreement because it involves mutual promises between two parties. In this case, Desmond, as the agent, agrees to perform a service (selling the Harpers' home) in exchange for the Harpers' promise to allow him to represent them and potentially pay him a commission once the sale is completed.

Bilateral agreements are characterized by both parties making commitments to fulfill their respective obligations. This contrasts with unilateral agreements, where only one party makes a promise or commitment, typically dependent on an action taken by the other party. While the agreement can be verbal, which is an important aspect, the key feature here that defines the nature of the contract is the mutual obligation created.

Moreover, while the term "exclusive agreement" could also fit if Desmond has exclusive rights to represent the Harpers in the sale, this option is more specific to exclusivity rather than the fundamental nature of mutual promises, which is what makes the agreement bilateral.

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