Which of the following situations best represents a unilateral contract?

• A. Two companies sign an agreement where both agree to deliver goods and make payment on specified dates.
• B. A company promises to pay a \$500 bonus to any employee who refers a new client, and the bonus is paid only if the referral results in a sale.
• C. A supplier and retailer agree in writing to purchase and deliver inventory at set intervals.
• D. A landlord and tenant sign a lease agreement outlining mutual obligations for rent and property maintenance.

Answer: (B)

Verified step by step guidance

1. Understand the concept of a unilateral contract: A unilateral contract is a type of agreement where only one party makes a promise, and the other party is not obligated to act. The contract is fulfilled when the second party performs the requested action.
2. Analyze the first option: Two companies sign an agreement where both agree to deliver goods and make payment on specified dates. This represents a bilateral contract because both parties have mutual obligations.
3. Analyze the second option: A company promises to pay a \$500 bonus to any employee who refers a new client, and the bonus is paid only if the referral results in a sale. This represents a unilateral contract because the company makes a promise, and the employee is not obligated to act. The contract is fulfilled only if the employee refers a client resulting in a sale.
4. Analyze the third option: A supplier and retailer agree in writing to purchase and deliver inventory at set intervals. This represents a bilateral contract because both parties have mutual obligations.
5. Analyze the fourth option: A landlord and tenant sign a lease agreement outlining mutual obligations for rent and property maintenance. This represents a bilateral contract because both parties have mutual obligations.