A legally binding agreement where one party (the offeror) makes a promise in exchange for another party’s performance of a specific act. Acceptance of the offer occurs only upon the completion of the requested act. A common example involves offering a reward for finding a lost item; the offeror promises to pay the reward, but is only obligated to do so if someone actually finds and returns the item.
This type of contract is advantageous because the offeror is not bound until the requested action is completed, providing flexibility. Historically, it has been crucial in situations where widespread offers are made, such as public announcements of rewards or contests, allowing for clear terms and conditions for acceptance.