Final answer:
A unilateral real estate contract to keep an offer open is known as an option contract. It grants an exclusive right to buy or lease a property within a set time frame. The concept includes service contracts and emphasizes adherence to contract terms by both parties.
Step-by-step explanation:
A unilateral contract to keep open for a specified period an offer to sell or lease real property is often referred to as an option contract in real estate. In this type of agreement, the seller gives the potential buyer the exclusive right to purchase or lease the property at predefined terms within a specified period, in exchange for a consideration that is typically non-refundable. Should the buyer decide to proceed with the purchase or lease within the time frame, the contract becomes a binding bilateral agreement.
Individuals or firms must own the property to enter into such a contract, using their property rights to engage in agreements with others. These contracts may include service agreements, in which the seller agrees to maintain or repair the property similar to service contracts offered with large purchases like cars or appliances. These contracts assure the buyer and define the responsibilities of the seller regarding the property's condition and maintenance during the option period.
Furthermore, if at the end of a leasing period, a tenant's agreement is terminated as per the contract, they must vacate the property and return all possessions and keys to the owner. Should they fail to do so, they may be liable for additional rent and damages, which highlights the importance of both parties adhering to the agreed terms.