Ohio Land Title Association – Title Agent Practice Exam

A unilateral contract is characterized by a promise made by one party that is contingent upon the performance of a specific act by another party. In this scenario, one party makes a commitment to fulfill a duty or provide something of value, but the other party is not obligated to respond with a promise of their own; they are only required to take action if they wish to accept the terms of that promise. This structure distinguishes unilateral contracts from mutual promises, which involve reciprocal commitments from both parties. A unilateral contract does not require a mutual exchange of promises, thereby creating a one-sided nature that defines its essence. Thus, it is accurate to state that a unilateral contract signifies a one-sided promise, as only one party is making a commitment while the other party has the option to act in accordance with that promise without a corresponding obligation to do so.