In a unilateral contract, which party has promised to perform an action?

In a unilateral contract, only one party makes a promise to perform an action, and that is typically the party that is providing a service or benefit in exchange for something else. In the context of insurance, this means that the insurer promises to pay out a claim or provide coverage if certain conditions are met, such as when the insured pays their premium.

The insured does not make a reciprocal promise in this type of contract. Instead, the insured’s actions, like paying the premium or filing a claim, do not constitute a promise to perform on their part. These actions are simply conditions that must be fulfilled for the insurer's promise to activate. The nature of a unilateral contract highlights the asymmetry in promises, making the insurer the one who has made the contractual promise to perform. Consequently, the correct answer captures the essential characteristic of unilateral contracts in the context of insurance.