What does the term “unilateral” refer to in a contract context?

The term “unilateral” in a contract context refers to a situation where only one party has responsibilities and obligations under the contract. This means that one party makes a promise or commitment that requires no reciprocal action or promise from the other party. An example of a unilateral contract is a reward contract, where one party offers a reward for the completion of a specific task, such as finding a lost pet. The person who finds the pet is not obligated to perform any action, and there is no equal obligation from both sides; only the party offering the reward is bound by the terms of the offer. This characteristic of unilateral contracts is what distinguishes them from bilateral contracts, where both parties have obligations and make mutual promises.