In a Unilateral Contract, who makes the promise to perform?

In a unilateral contract, one party makes a promise that is contingent upon the performance of an act by another party. In the context of insurance, the insurer is the one that makes the promise to perform, such as paying out claims or providing coverage, upon the occurrence of a specified event, like an accident or loss.

The other party, typically the insured, does not make a promise in return but instead provides some consideration, which is usually the payment of premiums. The insurer’s promise to provide benefits when certain conditions are met is what characterizes this agreement as unilateral. Thus, the central aspect of a unilateral contract is that only the insurer is bound to perform, while the insured’s performance (like paying premiums or notifying the insurer of a loss) is what triggers that promise rather than constituting a reciprocal promise.