In a contract where only one party is legally bound to perform, this is known as a

In a contract where only one party is legally bound to perform, this is known as a

• A. Adhesion contract
• B. Unilateral contract
• C. Conditional contract
• D. Aleatory contract

Answer: (B)

A unilateral contract is when only one party is legally bound to perform. In this arrangement, one side promises to do something in exchange for the other side’s action, but the other party isn’t obligated to act unless they choose to. The promisor’s commitment becomes binding only when the requested performance occurs, as seen in reward scenarios like “I’ll pay $100 if you return my lost dog.” The offeree can decide whether to perform, and once they do, the promisor must fulfill the promise. This differs from bilateral contracts, where both sides have promises to perform. Adhesion contracts are standard-form agreements offered on a take-it-or-leave-it basis, not defined by one-sided performance obligations. Conditional contracts hinge on a specified condition being met, which can affect whether obligations arise. Aleatory contracts depend on uncertain outcomes or events with unequal values. These concepts describe other contract features, but the defining feature for one-sided binding is the unilateral contract.

A unilateral contract is when only one party is legally bound to perform. In this arrangement, one side promises to do something in exchange for the other side’s action, but the other party isn’t obligated to act unless they choose to. The promisor’s commitment becomes binding only when the requested performance occurs, as seen in reward scenarios like “I’ll pay $100 if you return my lost dog.” The offeree can decide whether to perform, and once they do, the promisor must fulfill the promise. This differs from bilateral contracts, where both sides have promises to perform.

Adhesion contracts are standard-form agreements offered on a take-it-or-leave-it basis, not defined by one-sided performance obligations. Conditional contracts hinge on a specified condition being met, which can affect whether obligations arise. Aleatory contracts depend on uncertain outcomes or events with unequal values. These concepts describe other contract features, but the defining feature for one-sided binding is the unilateral contract.