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A contract where one of the parties has performed and the performance of the other party is due is called
- a)executed contract
- b)bilateral contract
- c)unilateral contract
- d)none of these
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
A contract where one of the parties has performed and the performance ...
Correct answer is Option C) unilateral contract
Explanation:
Unilateral Contracts
Unilateral Contracts
As the name itself denotes, these are one-sided contracts. In such contracts, only one party vows to perform a duty. The agreement is then open to anyone who wishes to vow the same and enter into the contract. A unilateral agreement is, however, complete only when one of the parties fulfills the promise.
A unilateral contract is a one-sided agreement in which one party promises to do something while the other does not follow through immediately. The opposing party, on the other hand, will act in the future. Contests are one example of unilateral contracts.
Furthermore, after the acting party fulfills the agreement's promise, the other party is obligated to follow suit because the promise is now enforceable. The unilateral contract will be breached if the side does not behave as promised.
Suppose, a person has announced a reward of Rs.1000 for anyone who finds him his lost puppy. Here, a unilateral offer is formed where only this person is in the contract initially. When someone finds the puppy and hands it over to that person, he is bound to pay him the reward. Once this is done, the unilateral contract is fulfilled.
**Examples of unilateral contracts:**
- A reward offer: A person offers a reward for finding their lost dog. The person who finds the dog and returns it has completed the requested action, thereby accepting the offer and triggering the offeror's obligation to pay the reward.
- A contest or competition: A company offers a cash prize for the best entry in a design competition. The participants submit their designs, and the winner's submission is considered acceptance, triggering the company's obligation to pay the cash prize.
In contrast, a **bilateral contract** involves mutual promises made by both parties, where each party's performance is contingent upon the other party's performance. An **executed contract** refers to a contract where both parties have fulfilled their respective obligations.
Most Upvoted Answer
A contract where one of the parties has performed and the performance ...
Option C
A Unilateral contract is a one sided contract in which only one party has perform his promise.
A Unilateral contract is a one sided contract in which only one party has perform his promise.
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Community Answer
A contract where one of the parties has performed and the performance ...
Unilateral Contract
Unilateral contracts are a type of contract in which one party has already performed their obligations, while the other party's performance is still due. In other words, one party has fulfilled their part of the contract, and now it is the other party's turn to perform.
Explanation:
Unilateral contracts are commonly seen in situations where one party offers a reward for the completion of a specific task or action. The party offering the reward is obligated to fulfill their promise only if the other party completes the required task or action. Until then, there is no obligation on the party offering the reward.
Example:
Let's consider an example to understand this better. Suppose Company A offers a reward of $500 to anyone who finds and returns their lost laptop. Company B finds the laptop and returns it to Company A. In this scenario, Company A has already performed by offering the reward, but Company B's performance is still due. Company B will receive the $500 reward only after returning the laptop.
Characteristics of Unilateral Contracts:
1. One-sided obligation: In a unilateral contract, only one party has an obligation to perform. The other party is not obligated until they complete the required action or task.
2. Conditional performance: The performance of the other party is contingent upon the completion of the specified task or action. Until then, there is no obligation on their part.
3. Revocable offer: The party offering the reward can typically revoke or withdraw the offer before the completion of the task or action. Once the task is completed, a valid contract is formed, and the offer cannot be revoked.
4. Performance as acceptance: The completion of the specified task or action acts as acceptance of the offer. It signifies the willingness of the party to be bound by the contract.
Conclusion:
In conclusion, a contract where one party has already performed, and the performance of the other party is still due is known as a unilateral contract. This type of contract is characterized by one-sided obligations, conditional performance, and the offeror's ability to revoke the offer until the task or action is completed.
Unilateral contracts are a type of contract in which one party has already performed their obligations, while the other party's performance is still due. In other words, one party has fulfilled their part of the contract, and now it is the other party's turn to perform.
Explanation:
Unilateral contracts are commonly seen in situations where one party offers a reward for the completion of a specific task or action. The party offering the reward is obligated to fulfill their promise only if the other party completes the required task or action. Until then, there is no obligation on the party offering the reward.
Example:
Let's consider an example to understand this better. Suppose Company A offers a reward of $500 to anyone who finds and returns their lost laptop. Company B finds the laptop and returns it to Company A. In this scenario, Company A has already performed by offering the reward, but Company B's performance is still due. Company B will receive the $500 reward only after returning the laptop.
Characteristics of Unilateral Contracts:
1. One-sided obligation: In a unilateral contract, only one party has an obligation to perform. The other party is not obligated until they complete the required action or task.
2. Conditional performance: The performance of the other party is contingent upon the completion of the specified task or action. Until then, there is no obligation on their part.
3. Revocable offer: The party offering the reward can typically revoke or withdraw the offer before the completion of the task or action. Once the task is completed, a valid contract is formed, and the offer cannot be revoked.
4. Performance as acceptance: The completion of the specified task or action acts as acceptance of the offer. It signifies the willingness of the party to be bound by the contract.
Conclusion:
In conclusion, a contract where one party has already performed, and the performance of the other party is still due is known as a unilateral contract. This type of contract is characterized by one-sided obligations, conditional performance, and the offeror's ability to revoke the offer until the task or action is completed.
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A contract where one of the parties has performed and the performance of the other party is due is calleda)executed contractb)bilateral contractc)unilateral contractd)none of theseCorrect answer is option 'C'. Can you explain this answer?
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