Which term best describes a contract where only one party makes a promise to act?

The term that best describes a contract where only one party makes a promise to act is a unilateral contract. In this type of contract, one party, often referred to as the offeror, makes a promise in exchange for an act or a performance from another party. The second party, known as the offeree, does not make any promises but can accept the offer by fulfilling the act specified in the contract.

An example of a unilateral contract is a reward for lost property: the person offering the reward promises to pay a certain amount to anyone who returns their lost item. The promise is binding upon the offeror as soon as someone fulfills the condition of returning the item, but the offeree is not required to take any action unless they choose to.

Understanding the dynamics of a unilateral contract is essential for those in the public adjusting field, as it can have implications on claims, offers, and negotiations related to insurance contracts.