Louisiana Bail Bonds Practice Exam

Which type of contract is defined as one in which only one party is obligated to perform?

1. Bilateral contract

2. Unilateral contract

3. Contingent contract

4. Conditional contract

The correct answer is: Unilateral contract

A unilateral contract is characterized by the obligation of only one party to perform, while the other party is not required to do anything unless a specified act occurs. In these contracts, one party makes a promise in exchange for a specified action or performance from the other party. This is commonly seen in scenarios such as reward offers—where one party promises to pay a reward if the other party finds a lost item. In contrast, a bilateral contract involves mutual obligations; both parties agree to fulfill specified duties. Contingent contracts depend on the occurrence of a certain event, but both parties typically have obligations. Similarly, conditional contracts also involve obligations tied to a specific condition or set of circumstances that must be met before the contract is enforceable. Therefore, the defining feature of a unilateral contract as the only type where one party bears the obligation to perform stands out clearly, justifying why this answer is the correct one.