Massachusetts Real Estate License Practice Test 2025 - Free Real Estate License Practice Questions and Study Guide

The correct answer is a unilateral contract. In a unilateral contract, one party makes a promise or commitment that is contingent upon the performance of an action by another party. This means that only one party is bound to fulfill their obligation when the other party performs the required act.

For example, if someone offers a reward for the return of a lost dog, they are making a unilateral offer. The owner is obligated to pay the reward once the dog is returned, but the person who finds the dog is not obligated to return it—they can choose to do so or not. In essence, the contract is established when the required action is completed, but until that point, the offeror's promise stands alone without reciprocal commitments.

The other options do not fit this scenario. A bilateral contract involves mutual promises from both parties, meaning both are bound to perform obligations. A reciprocal contract implies an exchange of promises or actions, similar to a bilateral contract. An implied contract arises from circumstances and actions rather than explicit words, and does not match the description of one party making a commitment without immediate reciprocal performance.