When does a unilateral contract become enforceable?

Prepare for the Tennessee Life and Health Insurance Exam. Hone your skills with flashcards and multiple choice questions, each with detailed explanations and hints. Ensure you're set for success!

A unilateral contract becomes enforceable when one party has made a promise that the other party can accept through performance. This type of contract involves a promise made by one party in exchange for an act by another party. Once the act is completed, the contract is then binding on the promisor.

In the case of a unilateral contract, the offeror is the one who makes a promise, while the offeree is the one who accepts the offer by performing the required action. Since the contract is based on the performance of the act rather than mutual agreement, it is specifically the completion of the act by the offeree that solidifies the enforceability of the contract. Therefore, the enforceability hinges on the action completed by the offeree, which fulfills the promise made by the offeror.

Other options suggest conditions that do not apply to unilateral contracts. For example, mutual agreement, which is a characteristic of bilateral contracts, and filing with the state, which is more relevant to regulated agreements or specific types of contracts, do not pertain to the formation of unilateral contracts.

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