What does the term unilateral contract mean?

A unilateral contract is defined as a one-sided contract in which only one party makes an enforceable promise. In this type of contract, one party pledges to fulfill a duty or provide a benefit, while the other party is not obligated to reciprocate until the specified condition is met. For instance, in a reward scenario, if someone offers a reward for the return of a lost pet, the person making the offer has made a promise that becomes enforceable once someone returns the pet.

The essence of a unilateral contract lies in its one-sided nature. It stands in contrast to mutual contracts, where both parties exchange promises or obligations, or agreements that require reciprocal actions to become binding. Understanding the nature of unilateral contracts is crucial because they embody a unique form of agreement that can often create obligations without the need for mutual consent beyond the initial promise.