What type of contract is a unilateral contract?

A unilateral contract is precisely defined as a contract in which only one party makes a promise or undertaking. This type of contract typically involves a situation where one party offers something to another party, and that offer is accepted by the other party's performance rather than by a reciprocal promise. A common example is a reward contract, where one party promises to pay a sum of money for a specific action, such as finding a lost pet. The obligation on the part of the offeror exists regardless of whether the offeree performs the action, illustrating that only one party is bound to fulfill an obligation.

In contrast, contracts requiring mutual agreement involve commitments or promises made by both parties. Contracts with two parties bound to perform typically refer to bilateral contracts, where each party is obligated to fulfill their promise. Lastly, contracts based on implied consent involve scenarios where the agreement is inferred from actions rather than explicitly stated promises, further distinguishing them from the nature of unilateral contracts, which are strictly defined by the promise of one party.