What type of contract is characterized by one party not assuming any reciprocation of obligation?

A unilateral contract is characterized by a situation where one party makes a promise or offers a performance without the expectation of a return promise or obligation from the other party. In simple terms, only one side is bound to fulfill an obligation, while the other side has no corresponding duty to act or provide anything in return.

A common example of a unilateral contract is a reward offer. For instance, if someone offers $100 to anyone who finds and returns their lost dog, the offeror is the only one bound to pay the reward upon completion of the task, while the finder of the dog is not obliged to search for or return the dog; they can choose to act or not.

This characteristic distinguishes unilateral contracts from bilateral contracts, where both parties exchange promises, and both bear obligations. Knowing this difference is essential for notaries and individuals engaged in contract law, as it defines the rights and responsibilities established in each situation. Contracts that fall under the other classifications mentioned—commutative or onerous contracts—typically involve mutual exchanges or obligations, which does not align with the nature of unilateral contracts.