What does a unilateral contract involve?

A unilateral contract specifically involves a promise made by one party in exchange for the act of another party. In this scenario, one party offers something, which is typically a reward or a benefit, contingent upon another party performing a specific action. The defining aspect of a unilateral contract is that only one party is bound to fulfill the promise once the other party performs the required act. For example, if someone offers a reward for the return of a lost pet, the offeror is making a promise to pay a reward, while the person who finds and returns the pet is not obligated to act, but upon doing so, they trigger the promise made by the offeror.

The other options imply different types of contractual relationships. A promise exchanged for a promise indicates a bilateral contract, where both parties are bound by mutual promises. Payment for services rendered typically occurs in the context of a service agreement, which also generally involves mutual promises. A mutual agreement between parties suggests a bilateral contract as well, where both sides agree to undertake obligations. Thus, the nature of a unilateral contract stands out distinctly because it revolves around an offer that is accepted only through performance rather than a reciprocal promise.