What defines a unilateral contract?

A unilateral contract is characterized by the fact that only one party is obligated to perform a specific action or fulfill a condition. In this type of contract, one party makes a promise in exchange for the act of another party. The defining feature is that the offeror (the person who makes the promise) is the only one bound by the contract until the other party performs the action. For example, in a reward situation, if someone offers a reward for finding a lost pet, only the person offering the reward is bound to pay if someone finds and returns the pet.

This understanding of unilateral contracts emphasizes that there is no mutual exchange of promises. The other party is not obligated to take any action; they only gain the right to claim the promised benefit upon fulfilling the specific condition laid out in the contract. This nature of obligation sets unilateral contracts apart from bilateral contracts, where both parties make reciprocal promises to each other.