Final Answer:
This type of contract is known as a unilateral contract.
Step-by-step explanation:
A unilateral contract is a one-sided agreement in which one party makes a promise in exchange for the performance of a specific act by the other party. In this type of contract, the party making the promise is obligated only if the other party chooses to perform the required action. The performance, not a reciprocal promise, is the acceptance of the contract.
An example of a unilateral contract is a reward offer. If someone promises a reward for the return of a lost item, the contract is formed when the item is returned, and the reward is obligated to the person who performed the act.
Understanding the distinction between unilateral and bilateral contracts is essential in contract law. In a unilateral contract, one party makes a promise contingent on the other party's performance, while in a bilateral contract, both parties exchange promises.