In terms of contract law, what differentiates a unilateral contract from a bilateral contract?

The distinction between unilateral and bilateral contracts primarily revolves around the nature of the obligations involved. In a unilateral contract, there is an obligation that rests solely with one party until certain conditions are fulfilled. This typically means that one party makes a promise that is only binding once the other party performs a specific act or condition.

For instance, in a unilateral contract, a person might offer a reward for the return of a lost item. The offeror (the one making the promise) is not obligated to pay the reward until someone else completes the act of returning the lost item. Until this condition is met, the obligation lies entirely with the offeror.

In contrast, bilateral contracts involve a mutual exchange of promises where both parties are obliged to fulfill their respective commitments to each other. In this type of contract, each party's promise serves as consideration for the other's promise, creating a reciprocal obligation.

Thus, the statement highlighting that in a unilateral contract, obligations are with one party until conditions are met accurately captures the essence of what differentiates unilateral contracts from bilateral contracts, making it the correct choice.