Question

In a unilateral contract, the parties exchange a ________ for a ________.

1) promise, promise
2) promise, performance
3) performance, promise
4) performance, performance

Answer 1

In a unilateral contract, a promise is exchanged for a performance, making option 2 the correct answer. This contract is formed when the offeree starts the performance in response to the offeror's promise. The correct option is 2.

Step-by-step explanation:

In a unilateral contract, the parties exchange a promise for a performance. Therefore, the correct answer is option 2) promise, performance. In this type of contract, one party, the offeror, makes a promise to pay money or provide some other benefit to another party, the offeree, in exchange for the offeree's performance of an act.

The contract becomes binding when the offeree begins the performance, but the offeree is not obligated to start or complete the act unless they wish to accept the offer. The correct option is 2.