Which type of contract is described as one-sided?

A unilateral contract is characterized as one-sided because it involves a promise made by only one party in exchange for a performance by another party. In this type of contract, one party offers something of value, and the other party accepts this offer by performing a specific act rather than making a promise in return. For example, in an insurance context, a company may promise to pay a benefit upon the occurrence of a certain event, such as the death of the insured. The insured does not have to make a return promise; they simply need to fulfill the conditions of the contract (e.g., paying premiums).

This one-sided nature distinguishes unilateral contracts from bilateral contracts, where both parties make mutual promises to each other. Understanding the unique characteristics of unilateral contracts is crucial because it affects how obligations and rights are established and enforced in legal scenarios, particularly in insurance and other service agreements.