What is an example of a unilateral contract?

A unilateral contract is a type of agreement where one party makes a promise in exchange for an act by another party, which means only one side is obligated to fulfill their promise. In this case, promising your child money for making good grades represents a unilateral contract. The parent (one party) makes a promise of payment contingent upon the child (the other party) performing a specific action—achieving good grades.

This form of contract exemplifies the essence of a unilateral agreement, as the obligation to pay arises only when the child fulfills the condition of good academic performance. The child does not need to agree or promise anything in return for the money, which further solidifies the unilateral nature of this contract.

In contrast, the other options typically involve mutual obligations or agreements. The exchange of goods entails a mutual contract where both parties have responsibilities, a business partnership involves shared agreements and duties by all parties, and a written lease implies obligations for both the landlord and the tenant. These all represent bilateral contracts, where both sides have promised to perform certain actions.