Multiple choice

A reward ad in the paper is an example of...

  1. a bilateral contract

  2. a unilateral contract

  3. an oral contract

  4. an invitation to negotiate
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A unilateral contract is formed when one party makes a promise in exchange for the performance of an act. A reward advertisement is a classic example because the offeror promises to pay a reward only if someone performs the requested action, such as finding a lost pet.

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