Which type of contract is created when one party promises to perform an act without any obligation from the other party?

A unilateral contract is established when one party makes a promise in exchange for an act performed by another party, with no obligation for the second party to act. It is a one-sided agreement where only one party is bound to fulfill their promise, and the other party’s performance is entirely voluntary. For example, in a unilateral contract, if someone offers a reward for the return of a lost item, they are only obligated to pay the reward if the item is returned. The person who finds the item is not required to act; they may choose to do so, but they have no legal obligation.

This type of contract is distinct from a bilateral contract, where both parties make mutual promises, and an implied contract, where the agreement is inferred from actions or conduct. A multi-lateral contract involves three or more parties, all of whom are bound by the contract’s stipulations. The unilateral contract accurately captures the scenario where one party is promising something without any promise or commitment required from the other party.