Final answer:
A potentially valid contract in which at least one party has the option to rescind is known as a unilateral contract.
Step-by-step explanation:
A potentially valid contract in which at least one party has the option to rescind is known as an unilateral contract. A potentially valid contract in which at least one party has the option to rescind is known as a unilateral contract.
In a unilateral contract, one party makes a promise or offer, and the other party can accept the offer by performing a specific act. However, the party making the offer has the option to rescind or revoke the offer before the other party performs the act.
For example, if a person offers a reward for finding their lost pet, only the party who finds the pet and performs the act of returning it will be entitled to the reward. The person who made the offer can choose to rescind the offer at any time before the pet is found.