California Insurance License Exam Practice Test Practice Question
A contract in which only one party to the contract is legally bound to do anything is
Correct Answer: D
Rationale: A unilateral contract involves a promise made by one party in exchange for an act by another, meaning only one party is legally obligated to fulfill their promise.
Option A, aleatory, refers to contracts dependent on uncertain events, not the binding nature of the parties.
Option B, conditional, involves obligations that depend on certain conditions being met, which applies to both parties.
Option C, personal, relates to contracts based on individual characteristics or relationships, not the binding nature of obligations.
Thus, D accurately describes a situation where one party is solely bound.
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