Which contract type is defined by only one party having to fulfill the terms under the contract?

Which contract type is defined by only one party having to fulfill the terms under the contract?

• A. Personal Contract
• B. Unilateral Contract
• C. Ambiguities
• D. Warranty

Answer: (B)

The main concept here is that only one party has an obligation to perform under the contract. In a unilateral contract, one party makes a promise that becomes enforceable only when the other party completes a specified act. Until that act is done, there is no duty on the other party and the promisor is not obligated to perform. A classic example is a reward offer: “I will pay $100 to anyone who returns my lost dog.” The person offering the reward isn’t bound to pay unless someone actually finds and returns the dog; once the act is performed, the promise to pay arises. Other terms like personal contract describe the relationship or performance expectations, ambiguities refer to unclear terms, and warranty is a promise about product quality—none describe the one-sided obligation that characterizes a unilateral contract.

The main concept here is that only one party has an obligation to perform under the contract. In a unilateral contract, one party makes a promise that becomes enforceable only when the other party completes a specified act. Until that act is done, there is no duty on the other party and the promisor is not obligated to perform. A classic example is a reward offer: “I will pay $100 to anyone who returns my lost dog.” The person offering the reward isn’t bound to pay unless someone actually finds and returns the dog; once the act is performed, the promise to pay arises. Other terms like personal contract describe the relationship or performance expectations, ambiguities refer to unclear terms, and warranty is a promise about product quality—none describe the one-sided obligation that characterizes a unilateral contract.