Which type of contract exists when one party makes a promise and the other can accept only by performing an action?

Which type of contract exists when one party makes a promise and the other can accept only by performing an action?

• A. Bilateral contract
• B. Unilateral contract
• C. Expressed contract
• D. Implied contract

Answer: (B)

A unilateral contract is characterized by one party making a promise that can only be accepted by the performance of a specific action by the other party. This form of contract creates a binding obligation for the promisor as soon as the offeree completes the required action. A typical example is a reward contract, such as offering a reward for finding a lost pet, where the offeror promises payment only if the action of finding and returning the pet is completed. In contrast, a bilateral contract involves mutual promises from both parties, meaning each side is obligated to fulfill their promises. An expressed contract states terms explicitly, while an implied contract is formed through the actions or conduct of the parties involved, rather than written or spoken agreements. In summary, the defining feature of a unilateral contract is the acceptance through action rather than a reciprocal promise, making it the correct answer.

A unilateral contract is characterized by one party making a promise that can only be accepted by the performance of a specific action by the other party. This form of contract creates a binding obligation for the promisor as soon as the offeree completes the required action. A typical example is a reward contract, such as offering a reward for finding a lost pet, where the offeror promises payment only if the action of finding and returning the pet is completed.

In contrast, a bilateral contract involves mutual promises from both parties, meaning each side is obligated to fulfill their promises. An expressed contract states terms explicitly, while an implied contract is formed through the actions or conduct of the parties involved, rather than written or spoken agreements. In summary, the defining feature of a unilateral contract is the acceptance through action rather than a reciprocal promise, making it the correct answer.