What is the characteristic feature of an onerous contract?

An onerous contract is characterized by a mutual exchange of benefits, meaning that both parties involved have obligations and receive something of value in return. This characteristic reflects the fundamental principle of contracts, where each party agrees to give and receive, thereby creating a binding agreement that is beneficial to both sides.

In the context of onerous contracts, there is a balance of consideration; while one party may bear more burden or cost in the transaction, they still receive compensation or benefit that is equivalent to their commitments. This ensures that the contract is not exploitative or one-sided.

The other characteristics mentioned, such as one-sided advantage, dependency on an uncertain event, or a lack of obligation for one party, describe scenarios that are not typical of onerous contracts. A one-sided advantage might indicate an unfair agreement, a contract dependent on an uncertain event could imply an element of risk that does not align with the mutuality found in onerous contracts, and having no obligation for one party does not fit the definition of a mutually binding contract. Hence, the essence of an onerous contract rests in the mutual exchange of benefits.