A unilateral contract that becomes bilateral upon being exercised is a(n)

In the context of contracts, a unilateral contract is one where only one party makes a promise or takes an action that binds them, while the other party is not obligated to act in any specific manner until they choose to accept the offer through their performance. When the offeree performs the conditions of the contract, the unilateral contract is exercised and transforms into a bilateral contract, where both parties become bound to fulfill their respective obligations.

The concept relates closely to the definition and nature of unilateral and bilateral contracts. A voidable contract, on the other hand, is a valid contract that can be affirmed or rejected by one party at a later date due to certain circumstances—like incapacity, misrepresentation, or duress—but does not necessarily describe the transition from unilateral to bilateral contract status.

Understanding that a unilateral contract becomes bilateral upon execution of the terms highlights how the nature of agreements can shift based on actions taken by the parties involved.