A unilateral contract is characterized by:

A unilateral contract is defined as a type of agreement where one party makes a promise that is contingent upon the performance of an act by another party. This characteristic distinctly sets it apart from bilateral contracts, which involve mutual promises from both parties. In the case of a unilateral contract, the promise is only binding on the party making it until the specified act is completed.

For example, if someone offers a reward for the return of a lost dog, the person offering the reward promises to pay upon the act of returning the dog. The contract is only executed when the act occurs, highlighting the one-sided nature of the promise. This underlines the key feature of unilateral contracts, emphasizing that only one party is committing to fulfill a promise in return for an action, rather than a mutual agreement or exchange of promises between two parties.