What type of contract involves one party accepting an obligation without a reciprocal obligation?

What type of contract involves one party accepting an obligation without a reciprocal obligation?

• A. Bilateral Contract
• B. Unilateral Contract
• C. Conditional Contract
• D. Fixed-term Contract

Answer: (B)

A unilateral contract is characterized by one party making a promise or taking an action that obligates them, while the other party is not required to reciprocate but rather can accept the terms by fulfilling a specific condition or performance. This type of contract often arises in situations such as rewards, where one party offers a reward for a specific act, and the acceptance occurs when someone performs that act. In contrast, a bilateral contract involves mutual obligations, with both parties agreeing to fulfill specific promises, thus creating reciprocal obligations between them. A conditional contract is dependent on a specific event occurring before any obligations are enforced. A fixed-term contract involves an agreement that lasts for a specified time period and typically includes obligations for both parties over that term. Understanding the nature of a unilateral contract highlights how it differs from other contract types by emphasizing the lack of a reciprocal obligation. This unique aspect is a critical distinction in contract law that helps clarify when a unilateral contract is in effect.

A unilateral contract is characterized by one party making a promise or taking an action that obligates them, while the other party is not required to reciprocate but rather can accept the terms by fulfilling a specific condition or performance. This type of contract often arises in situations such as rewards, where one party offers a reward for a specific act, and the acceptance occurs when someone performs that act.

In contrast, a bilateral contract involves mutual obligations, with both parties agreeing to fulfill specific promises, thus creating reciprocal obligations between them. A conditional contract is dependent on a specific event occurring before any obligations are enforced. A fixed-term contract involves an agreement that lasts for a specified time period and typically includes obligations for both parties over that term.

Understanding the nature of a unilateral contract highlights how it differs from other contract types by emphasizing the lack of a reciprocal obligation. This unique aspect is a critical distinction in contract law that helps clarify when a unilateral contract is in effect.