Which statement best describes the contract concept illustrated when a party promises to perform and the other party accepts by performance?

• A. Acceptance by performance generally forms a unilateral contract.
• B. Acceptance by performance is not recognized in contract law.
• C. Performance-based acceptance requires signature.
• D. Performance-based acceptance only applies to consumer contracts.

Answer: (A)

In a unilateral contract, acceptance is by performing the requested act rather than by promising to perform. When one party offers to do something conditioned on the other party’s performance, the offeree accepts by actually completing that performance, and a binding contract arises from that performance.

This description fits best because it captures the essential idea: the offeror’s promise is exchanged for the offeree’s performance, not for a further promise. Signature or written acceptance isn’t required, and it isn’t limited to consumer contracts—the rule applies broadly.