Which term describes a contract in which only one party makes a promise or undertakes the requested performance?

• A. Executed contract
• B. Express contract
• C. Voidable contract
• D. Unilateral contract

Answer: (D)

A unilateral contract describes a contract in which only one party makes a promise, and the other party’s acceptance is through performing the requested act. The contract comes into existence when that performance occurs, not when a promise is made. For example, a reward offer—“I will pay $1,000 to anyone who returns my lost dog”—creates a promise only to pay after the dog is found; the offeree accepts by performing the requested act. In contrast, an executed contract is one where both sides have fulfilled their obligations, an express contract is defined by explicit terms (written or spoken) rather than the number of promises, and a voidable contract is valid but may be rescinded due to a defect.