What does a unilateral contract typically involve in terms of obligation?

In a unilateral contract, there is only one party that has made a promise and is bound to fulfill their obligation, while the other party is not required to provide a reciprocal promise or performance. In the context of insurance, this means that only the insurer is obligated to fulfill the terms of the contract, such as paying a claim, as long as the insured has met their obligations, like paying the premium. The insured may choose to let the policy lapse or not file a claim, and they are not legally bound to take any specific action in return for the insurer’s promise. This one-sided nature of obligation highlights the key characteristic of unilateral contracts in insurance agreements.