Final answer:
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. This type of contract is known as a unilateral contract.
Step-by-step explanation:
In a unilateral insurance contract, only the insurer is bound by a legally enforceable promise. The insurer commits to providing coverage in exchange for the policyholder's premium payments. Unlike a bilateral contract where both parties make promises, a unilateral contract is characterized by the asymmetry of obligations.
The insured party is not legally obligated to perform any specific actions, such as filing a claim, but if they do so and meet the contract's conditions, the insurer is obligated to fulfill its promise to provide coverage. Unilateral contracts in insurance exemplify the one-sided nature of the commitment, with the insurer assuming the primary responsibility for fulfilling the contractual obligations, while the insured has the option to act upon the contract's terms without being legally bound to do so.