The basic distinction between a bilateral contract and a unilateral contract is:
A) a unilateral contract is created by the courts rather than by parties to an agreement.
B) one is enforceable, the other is not.
C) one must be in writing, the other may be oral.
D) only one promise is involved in a unilateral contract.

Question

Quizplus · Accepted Answer

The basic distinction between a bilateral contract and a unilateral contract is that a bilateral contract involves two promises (each party promises to do something for the other), while a unilateral contract involves only one promise (one party promises to do something in exchange for the other party's performance). In a bilateral contract, both parties are bound to perform, while in a unilateral contract, only the party making the promise is bound to perform if the condition is met. Therefore, option D, which states that only one promise is involved in a unilateral contract, is the best choice.

The Basic Distinction Between a Bilateral Contract and a Unilateral