What defines a "unilateral contract" in Texas contract law?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

In Texas contract law, a unilateral contract is defined by the fact that only one party makes a promise that is contingent upon the performance of the other party. This means that one party's obligation is tied to the other party's action, rather than a mutual exchange of promises. A classic example of a unilateral contract is a reward offer, where one party promises to pay a reward if another party finds and returns a lost item. The promise becomes enforceable once the other party completes the specified act, although they are under no obligation to do so.

The concept of a unilateral contract emphasizes that the promise is dependent solely on the performance of an action; therefore, the offeree does not have to make a promise in return but rather can accept the offer through their performance. This distinguishes unilateral contracts from bilateral contracts, where both parties make mutual promises to each other.

The other options do not accurately describe unilateral contracts and are thus not defining features of them. For example, the assertion that both parties make mutual promises applies to bilateral contracts rather than unilateral ones. Similarly, the idea that all contracts must include a "unilateral clause" or that a contract is solely focused on monetary exchange are misrepresentations of contract principles and do not capture the essential nature of unilateral

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