Tell if putting imei no of iphone in imeiinfo.com results?
"Out of contract"
"Carrier: unlock"
It means its factory unlocked or what?
Yes, it means it's factory unlocked.
I didn't understand that first, but after I checked for a couple of similar sites, one which is http://www.iphoneox.com/ showed the same as yours when I entered my iPhone 4 IMEI, and another one which is http://iphoneimei.info/ showed
Carrier: Retail Unlock
SIM Lock: Unlocked
So I concluded that it means your iPhone is factory unlocked, because my iPhone is factory unlocked and I'm sure about it plus I don't have a contract with any carrier.
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